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Despite voluntarily removing yourself from Debt Counselling, your credit score will still reflect poorly because your accounts are most probably not up to date. You will need to rebuild your credit worthiness and prove that you are worthy of credit again. In terms of your debt review status, you will need to contact your debt counsellor to ensure that they have updated their systems and notified the credit providers by sending the 17.W form. The credit bureaus will only change your status once your debt has been paid up. 

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Your debt counsellor should have reduced your interest rates when restructuring your debt repayments. Termination is no longer voluntary as per the changes to the National Credit Act in February 2015. Failure to pay your creditors can result in termination of your debt review which would result in you having to pay the original instalments to your credit providers and possibly the shortfall for the duration you were under debt review.
 
It would be best to communicate with your debt counsellor before making any decisions.

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Whilst under debt review, you will not be able to secure any credit. If you are in need of cash for expenses, it would be best to contact your debt counsellor and arrange for a restructure of your payment plan if possible. With debt review, the idea is for clients to not increase their debt, hence the reason for not being allowed further credit.

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Under debt counselling, you are not able to secure any form of loans as stipulated by law. Cancelling your debt review process will result in your monthly instalments being reverted to the original instalment amounts you were paying prior to debt review. In any instance, taking out a loan may result in you actually paying much more than you currently paying under debt review.

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If you are blacklisted, it's highly unlikely that you will get a loan since you are a credit risk, lenders will be very cautious about providing you with further credit.

If you want to pay off your debt, your best option is to opt for debt management.

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Cancelling or terminating your debt counselling process can only occur under the following circumstances:
 

  • In the beginning, before you debt counsellor accepts your application for debt review by sending out the From 17.2 notifying your credit providers and credit bureaus that you have been accepted under debt review.
  • Before the legal process is complete, you can get a court order proving you are no longer over-indebted (legal fees at your cost).
  • After the legal process is completed, you can have your debt review court order rescinded by applying to the magistrates court where your original court order was issued (legal fees at your cost).
  • At the end of your debt review process, when you receive a clearance certificate (all unsecured debt is paid up and your home loan and VAF is up to date)

 
Remember, if you chose to cancel, your instalments will revert to the original amounts prior to debt counselling and your debt will become more expensive. You should consult your debt counsellor to discuss the best option for your situation.

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While under debt review you may not apply for any further credit, once the debt has been paid the debt counsellor will then issue the client a clearance certificate. Once this has been issued the credit bureaus will clear your credit record and you will be able to apply for credit again. The reason for debt review is to help over-indebted consumers rehabilitate themselves voluntary and it has shown itself to be very successful in cases where the consumer pays their rehabilitation amount each and every month. If debt review was not around, then without doubt many consumers would have horrific credit records with summonses and judgements which would definitely mean no borrowing for a considerable period of time.

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Yes you can as per the National Credit Act (NCA), but in reality this is tricky, as lenders do not want to take on further risk. If you are awarded a loan the lender will probably charge high interest fees because of the risk that they are taking on. I believe staying under debt review is the better option.

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Once under debt counselling, you cannot apply for any form of credit. Thus your husband will need to apply alone.

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When you are in a position to service your debts, you can opt to have your Admin order rescinded via the courts.

You will need to prove that you are able to service your debts. This requires a court application from you and you may require the help of a lawyer.

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A consolidation loan can assist in becoming debt free, but remember, you would still be taking out a loan, which then just settles your outstanding debt. You are still liable to pay back the consolidation loan, so you are not entirely debt free.

A consolidation loan helps as you only make one payment towards the loan instead of multiple loan payments as I would imagine you are currently doing. Also the interest rate on the consolidation loan needs to be lower than the interest you are paying currently. Only then would it wise to use a consolidation loan as you would be paying less. There are strict requirements for consolidation loans, one of which states that all your debts need to be up to date.
 
The best option would be to speak to a debt management company to assess what solutions would be best suited to you.

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Debt counselling is a solution that is designed for consumers who do have some sort of income and therefore is a requirement. However, should they be receiving some income, they can be assisted, as long as it is monthly. The amount can vary.

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Cancelling your debt review can put you in a worse off position so before making any decisions, you should talk to your debt counsellor first as there are legal costs attached to this too. Once out of debt review does not mean that you will necessarily secure a loan as your credit history will still show that you are in arrears and that you have applied for debt counselling. This would need to be cleared and your credit history to be built up again in order to qualify.

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Despite voluntarily removing yourself from Debt Counselling, your credit score will still reflect poorly because your accounts are most probably not up to date. You will need to rebuild your credit worthiness and prove that you are worthy of credit again. In terms of your debt review status, you will need to contact your debt counsellor to ensure that they have updated their systems and notified the credit providers by sending the 17.W form. The credit bureaus will only change your status once your debt has been paid up. 

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You can rescind your debt review by applying to the to the magistrates court that originally issued your court order. In terms of purchasing a vehicle, you will need to prove that you are credit worthy once again, which may take some time.

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You should most certainly contact your debt counsellor and let them know. Your credit providers should only be contacting your debt counsellor. Should you receive further call from creditors, you should refer them to your debt counsellor who will sort out the issues for you, given that your accounts with that specific credit provider is included in your debt counselling process.

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I’m afraid that consolidating debt into a new home loan is not an option.
 
The banks will not assist with this, as this is not part of their lending requirements nor do they offer specific products for this.
 
However, this does not mean that you cannot refinance the property at a later stage after acquiring the property.
 
Although you may need to wait for a year to elapse before refinancing the property is possible.

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It is best to contact your debt counsellor immediately. You should also make the outstanding monthly payment so that you can get back on track and up to date with your payments and possibly avoid termination from that credit provider. In future, if you know that you cannot make a full monthly payment, contact your debt counsellor so that arrangements can be made if possible. You have to pay your monthly instalments in full to avoid termination.

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A consolidation loan is simply treated as a personal or unsecured loan.
 
There should be no negative impact to your credit scoring, however, the exact impact would depend on the composition of your overall debt portfolio.
 
The fact that a large loan is issued in order to consolidate, means that a higher outstanding balance relative to total credit issued, may lower your scoring slightly from date of inception, but will gradually improve as you pay the loan.
 
However, if you were settling credit card debt, with high balances relative to their limits, the consolidation could actually improve scoring, especially if you are making use of payday loans to supplement your spending.
 
And lastly, a consolidation loan should not negatively impact your scoring to such a degree that you are declined for Home loan or vehicle financing.
 
Your overall credit scoring, payment history, affordability and value of the asset are all assessed in credit applications.
 
And provided these are in line with that credit providers lending requirements when applying for home loan or vehicle financing, you should have no problem qualifying regardless of the consolidation loan or not.

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Ideally, refinancing/remortgaging a property with sufficient equity is the only route for you to consolidate R2 million over that length of time, given your budgetary constraints.
 
It would be the most viable solution too as the rate on a mortgage would be far more competitive than an equivalent unsecured or bridging facility.
 
Additionally, according to the National Credit Act, the maximum unsecured facility permissible is R150 000. However, I hear Nedbank, FNB and Capitec offer R200 000 credit cards and personal loans for debt consolidation.
 
As such, a specialist product would need to be structured in order to accommodate your needs.
 
This would only be possible by contacting one of the private banking initiations or specialist lenders, who would in any case require immovable property or other tangible assets as collateral for the advance.
 
The only mainstream option I am aware of is Standard Bank credit customer assist. However, you would need to bank with and hold SBSA debt in order for them to consider.
 
However, RMB and Investec, who would look at managing your entire asset and debt portfolio, may be able to structure something specifically for you.

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In this situation, it would be best to speak to your debt counsellor to try and work out a new payment plan. You cannot take a break from making your debt repayments as this can result in cancellation of your debt counselling process and will require you to start paying the original instalments prior to debt counselling and damaging your credit report even further. Cancellation of your debt counselling process is also not an option as many debt counsellors do not accept clients who have already been under debt counselling, especially if you cancel as it would show a lack of commitment to paying off your debt.

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