Getting a clearance certificate after completing your debt review process is a crucial step towards regaining your financial independence and improving your credit score. A clearance certificate is the official document that confirms you’ve successfully paid off your restructured debts under the debt review process, allowing you to re-enter the credit market without the “under debt review” flag on your credit profile.
This guide will walk you through the steps of obtaining a clearance certificate from debt review and what it means for your financial future.
What is a Clearance Certificate?
A clearance certificate is a formal document issued by your debt counsellor or an authorized service, which confirms that you have fully paid off all the debts that were subject to debt review. This document is crucial for removing the debt review notice from your credit report and improving your credit status with the major credit bureaus.
Steps to Get a Clearance Certificate
- Ensure All Your Debts are Settled
The first step in obtaining a clearance certificate is ensuring that all your debts, as listed in your debt review restructuring plan, have been settled. This includes your home loan, car loans, credit card balances, and personal loans. However, debts such as your bond (home loan) may be excluded if it’s up to date and not part of the reviewed accounts.
- Request a Statement of Account from Creditors
Once you have paid off all your debt, request statements from your creditors as proof that all outstanding amounts have been cleared. These statements are vital in the clearance process, as they confirm that your accounts are paid in full and up to date.
- Contact Your Debt Review Service
Once you have all the necessary documentation, reach out to your debt review service or whoever facilitated your debt restructuring. You will need to formally request the clearance certificate at this stage, presenting proof that your debts have been settled.
- Issuance of the Clearance Certificate
After verifying that all debts have been paid, your debt review facilitator will issue the clearance certificate. This is a legal document that can be used to prove that you have successfully completed the debt review process.
- Notify Credit Bureaus
The next step is for your debt review service to inform the credit bureaus of your clearance. They will submit the clearance certificate and update your credit profile, removing the “under debt review” status. This process can take up to 21 business days, depending on the credit bureau’s timelines.
- Check Your Credit Profile
Once your clearance certificate has been submitted and processed, it’s essential to check your credit profile to ensure that the debt review notice has been removed. You can request a free credit report from any of the major South African credit bureaus to verify this.
Why is the Clearance Certificate Important?
A clearance certificate is the key to restoring your credit status. Once the credit bureaus remove the debt review flag, you’ll be able to access credit again, but it’s important to approach this responsibly. Lenders will see that you’ve completed the debt review process, which will help in rebuilding your credit score over time.
How Long Does the Process Take?
The time it takes to get your clearance certificate can vary depending on how quickly you can provide proof of settled debts and how efficiently your debt review service processes the request. Once the clearance certificate is issued, credit bureaus may take between 14 and 21 days to update your profile. It’s important to follow up to ensure the process is completed within a reasonable time frame.
Key Takeaways
- Make sure all your restructured debts are paid in full before requesting a clearance certificate.
- Obtain statements from your creditors as proof of settlement.
- Contact your debt review service to request the certificate once all debts are cleared.
- Ensure that credit bureaus are notified so that the “under debt review” notice can be removed from your profile.
- Once cleared, check your credit report to confirm that the review status has been updated.
Completing the debt review process and getting a clearance certificate is a major financial milestone. It signifies that you have successfully managed your debt and can now start rebuilding your credit health. However, it’s important to remain cautious and manage any new credit responsibly to avoid falling back into debt.
If you’re ready to start the process of obtaining your clearance certificate, we’re here to guide you every step of the way. Reach out to us at Remove Debt for professional support and to clear your name from debt review.
