11 Mar A Fresh Start: Removing Debt Review and Taking Control

It’s a horrible feeling like you’re trapped in debt review. Not being able to escape the process might have you yearning for lost financial freedom. Yes, it’s supposed to be a helpful tool, but the time commitment, financial fluctuations, and having a hard time exiting the process are all valid reasons why you might want to ride off into the sunset. Luckily, you do have options should you like to exit the debt review process and take back control. Keep reading for everything you should know about exiting debt review and taking back control.

In case you didn’t know, debt review is the process of contacting a credit counsellor for assistance in negotiating with creditors and consolidating all your debt into one reduced monthly payment. Your counsellor will explain your circumstances and negotiate for lower interest rates, or even for debt to be written off.

When should you exit Debt Review?

There are situations where it’s a good idea to leave Debt Review. For instance, if your financial situation has vastly improved and you can manage monthly repayments on your own. Perhaps the repayment terms are no longer favourable because of your circumstances. Worse still, you may be dissatisfied with your debt counsellor’s service– maybe they’re not negotiating with creditors in a way that works for you.

How to exit Debt Review

This is a simplified explanation of how one can usually exit Debt Review. Depending on your circumstances, this process may involve caveats.

First, you should contact your debt counsellor and explain that you would like to exit Debt Review. You’ll explore options such as voluntary withdrawal, paying debt in full, and reaching a settlement. After you’ve fulfilled all Debt Review obligations, you should obtain a clearance certificate. This document verifies you’ve reached your Debt Review options. After that, submit your clearance certificate to the credit bureaus, which initiates the process of removing the Debt Review flag from your credit report.

Taking control

After you’re free from Debt Review, take control again by growing your credit score and effectively managing your finances. Focus on paying off remaining debt, using credit cards responsibly, and budgeting. This will pave the way to great credit, better loan options and interest rates, less anxiety around money, and being empowered over your financial freedom.

Reach out to Cape Town Legal Consultants today for help clearing Debt Review.