PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Gcina Ntsonga
 
Comments: 0
Article views: 2356
 
 
Latest Badges:

 
View all Gcina Ntsonga's badges.
 

Will I qualify for credit after debt review?

16 November 2015, 09:36

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 

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

Read more from our Users

Submitted by
Tony Birkholtz
Greed on the High Seas

Fish numbers on the brink of collapse are again highlighted by the WWF…and then we hear of Operation Phakisa which plans to grow the fishing industry in our bordering oceans of South Africa. Read more...

0 comments 419 views
Submitted by
C_De_Lange
Why more regular licence renewals...

With access to live data roads and traffic can be managed more efficiently.  Read more...

0 comments 295 views
Submitted by
Agent Smith
Throwback Thursday to a once pros...

The Zimbabwean story is such a disaster and a terrible idea, you would think that no sane person would ever try to replicate it. However, the South African government is following in the exact footsteps. Read more...

0 comments 287 views
Submitted by
Cecil Lwana528
Closing Africa's power gap

The power gap imposes high economic costs, electricity is the life-blood of any economy, it is the key to getting businesses to work, whether you’re in the agricultural sector, or mining sector.  Read more...

0 comments 45 views
Submitted by
Bert Hall
Where are we headed?

Our president can send the best people he can muster around the world (envoys he calls them) to drum up investment for SA but it won’t happen if he cannot ensure a constant economical source of electricity. Read more...

0 comments 665 views
Submitted by
Sean Beukes
A conundrum: To vote DA or Cyril?...

A conundrum ... Do I vote DA even though I'm not sure if they can save us? Or, do I vote ANC, in the hope that Cyril can save us? Read more...

0 comments 902 views
 

services

Press Code We subscribe to the Press Code.

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

Terms and Conditions 24.com Terms and Conditions - Updated April 2012

 
Interactive Advertising Bureau
 
© 2019 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.