My response is for the News24 reader who asked if they will qualify for credit once they finish debt review. This question is a particularly difficult one for debt counselors as "the client will be re-introduced into the credit market after debt review" as one of the selling points for them.
If a client finishes off the debt review payment plan with a good payment history throughout the process and is issued with a clearance certificate (also known as a Form 19) without any issues like differences of balances between the Payment Distribution Agency (PDA) and the credit providers then the client will be gladly back accepted back into the credit market.
Though this is idealistic situation, the reality of the situation is that consumer's' circumstances change through the 5-7 years they will be under debt review. There may be instances that the consumer is forced to miss a monthly payment and this payment behaviour will affect how will you are received into the credit market after the process. This is just one problem
The second problem is end of term balance differences between credit providers and the PDA. This means although the PDA declares the consumer to have finished the debt review process, credit providers will still have a residual balance that will put the consumer under debt review still in their eyes. Thus the consumer will not be able to access credit after the process even with a Form 19.
Ultimately what is essential to accessing further credit after the process is to get the services a good debt counselor or doing research about the debt counselor you are already with. The National Credit Regulator will help you with both of these and also platforms like Hello Peter and The Debtulator, a new platform Financial Reach South Africa is working on that will allow consumers to vent anonymously about their debt management issues and get responses and recommendations on how to solve their issues.
Make sure you get into the process with a trusted debt counselor and also stay in contact with them to ensure the issues that come along the way are solved swiftly. All of these factors will ensure that once you finish the process of debt review, you can resume acquiring debt responsibly