We’ve spoken at great lengths about debt and the complications of finding yourself in a debt hole. For example, we wrote an in-depth piece about debt rescue and all that it entails. We believe that articles like this are vital in seeing our nation completely debt-free!
We’re not financial experts by any means, but we do know a thing or two about money management, and we long to see debt become a thing of the past in everyone’s lives.
In this article, we’re going to take you through exactly how you can successfully remove your name from the debt review process and move forward on a positive financial footing. There are two ways that you can do this, but one of them is not recommended.
Let’s jump in.
The Bad Way
The process of obtaining a debt review clearance certificate is one that some people just can’t manage. So, they endeavour to remove their names from the process by cancelling their debt review. While this will certainly “clear” your name from the debt review, it won’t clear your name in the way you would want.
Your credit record will still show your payment and default history for five years, which, if you’re in debt and have consistently struggled to repay it, won’t be a good thing. Every time a credit provider runs a credit check on you, they will be shown that you were under debt review but that you cancelled the process before settling your debts.
This will communicate that you are not committed to getting rid of your debt and that you’re probably not trustworthy or reliable enough to receive any credit. This, in turn, will most likely lead to the credit provider rejecting your credit applications in the future.
The Good Way
The other (and better) way of clearing your name from under the debt review cloud is by obtaining a debt review clearance certificate. We won’t go into the nitty-gritty of how this works today, but we’ll definitely cover it in another piece!
Essentially, you’re issued a debt review clearance certificate when you’ve successfully completed the debt review process. This seems pretty straightforward, but as we mentioned above, it’s a bit more complicated for some people. Obtaining a clearance certificate requires you to settle all of your current debts (which can be difficult!).
Once you do finally obtain your clearance, your debt counsellor is obliged to notify the credit bureaus, which are then legally required to remove your name from under debt review within 21 business days of being notified of your clearance.
Their systems will thus be updated to show that you have successfully completed your debt review process! Cue the celebrations.
As you’ve read above, there are two ways to clear your name from being under debt review. One way doesn’t really help you; the other way does. At the end of the day, the responsibility is on you to make the right choice for your financial future.
So, which one will you choose?