Try not to make debt after debt review

When Can I Make Debt After Debt Review?

You can apply for credit once you get your clearance certificate, though your credit score will take time to improve.

Debt Review helps over-indebted consumers find balance in their finances and lives. If you’ve recently completed Debt Review, you will have repaid all your restructured debts and should be in a much better situation financially. You might also be asking yourself “When can I make debt after Debt Review?” – consider that just because you can, doesn’t mean you should.

Our Cape Town Legal Consultants team works closely with consumers through their struggles with credit and their triumphs through Debt Review. When the process ends, we encourage our clients to practice careful lending and be mindful of their financial limitations when re-entering the credit market.

Applying for Credit After Debt Review

When can you make debt after debt review?

Technically speaking, you can apply for credit as quickly as one week after you receive your Debt Clearance Certificate (also known as Form 19), however, we don’t recommend it.

Firstly, understand that it can take some credit bureaus a month or more to update your credit report and remove the Debt Review record. This means that within just 7 days, your credit record will not accurately represent your current financial situation.

From experience and our understanding of the processes involved in acquiring a loan, we recommend waiting at least 3 months before applying for new debt. Before you apply, get a free credit check online to make sure there are no discrepancies, and to confirm that the Debt Review Flag was removed.

Your New Debt Journey Can Look Different

Try not to apply for credit straight after debt review

Remember that your credit score will take time to get better after Debt Review, and your credit history will still be visible for 24 months after completing the process. You may not qualify for large loans for these reasons.

The best thing to do is keep it simple in the beginning, by applying for a small account like a cell phone contract or a store account. This will help you to get used to more pressure on your budget so that you can figure out how to manage debt and still afford your expenses and lifestyle.

By maintaining these payments towards small accounts, your credit score will improve over time.

Your new journey of acquiring debts can be a better one, as long as you don’t over-commit. Getting into debt is a lot easier than getting out of debt, so take it one step at a time and enjoy the financial freedom you’ve worked so hard for.

Advice from The Professionals

Try credit clearance to remove debt review.

To conclude, once you’ve put in the effort to overcome your debts through Debt Review, you are free to apply for new debts. Make decisions that simplify your life now without complicating it in the future. Be mindful of the debts you accumulate and contact our team for any assistance or guidance when it comes to dealing with life after the Debt Review process.

call to action image

We're here to help

Navigate your way to debt freedom

Contact Us