Debt-911, a registered debt counsellor with a national footprint has advice for anyone considering withdrawing from the debt counselling process.
What would happen if you withdrew from debt counselling?
Voluntary withdrawal from debt counselling triggers a notification by your counsellor to the National Credit Regulator, (NCR).
This will then be forwarded to credit bureau, and the information will be available to your creditors who will in turn decide individually whether or not to take legal action against you for your outstanding debts.
It is important to understand that voluntary withdrawal from debt counselling will not expunge your credit record, making it almost impossible for you to obtain additional credit.
Only consumers who have completed the debt counselling process will be issued with a clearance certificate.
Even though you may be diligently paying off your accounts every month, your credit record may be negative.
It must be borne in mind that if the amount paid is less than the minimum required, that your credit record will reflect a default.
Interest will continue to be levied until such time as the agreement is needed by one’s creditors or a court order is issued after which it will be adjusted.
When a consumer has paid according to the revised payment plan and interest has been adjusted, the credit provider will be required to do a reconciliation and correction of the account as and when the payment distribution company has notified a credit that their account has paid up.
Consolidation loans can be applied for however, credit providers can still refuse to grant this. It is important to understand that consolidation loans add to one’s overall debt burden.
If you are feeling debt stressed and are wondering how you are going to pay your monthly financial commitments, simply call us, SMS Help to 40935 or fill out the form alongside and a highly trained, debt counsellor will make contact with you to assess your personal financial situation and give you free advice.