What happens if I can’t pay my debt review?

If you’re under debt review and need a loan urgently, it’s unlikely to be granted by the mainstream banks as the practice is prohibited in terms of the National Credit Act.

It is not possible to get a personal loan while still under debt review. While under debt review, you cannot access further credit in the form of a loan or credit card. This is not to try and make life difficult but rather to help you regain financial control.

If you were able to continue accumulating credit during the debt counselling process, your debt would spiral out of control and you would be unable to make the committed repayments.

There are, however, several unregistered loan sharks and reckless lending companies in the market. If you are offered a loan while under debt review you should be very wary as this is not allowed. These unscrupulous characters are likely looking to make money out of you by taking advantage of your vulnerability and will have incredibly high-interest rates.

⇢ The National Credit Act introduced the debt review process so that South Africans in debt would have a chance to rehabilitate their finances; the alternative would be to succumb to personal administration and deal with the long term effects such as repossession of their assets.

The main aim of the debt review process is to get the person debt-free and focus on their current debt instead of building up more.

Debt review removal

To have your debt review notice removed, a court application must be made for the court to find that you are not over-indebted. Once this is reviewed by the court and a decision is made, you will be notified.

Can I cancel debt review or debt counselling?

Yes. If you are financially stable, no longer over-indebted and it’s possible for you to afford the original monthly payments that were made before the debt review process.

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