22 May What Happens After You Pay Off Debt Review
Paying off your debt review is a genuinely significant achievement. For most South Africans, it represents years of discipline, sacrifice, and staying the course through a process that is not always easy. But once that final payment is made, a lot of people find themselves unsure of what actually happens next.
This guide walks you through every step so you know exactly what to expect and what to do.
Step One: Your Debt Counsellor Issues a Clearance Certificate
The most important thing that needs to happen after your last account is settled is the issuing of your Form 19 Clearance Certificate. This is a formal document issued by your registered debt counsellor that confirms all accounts included in your debt review plan have been paid in full.
Without this certificate, your debt review is not officially over in the eyes of the credit bureaus. The flag on your credit profile remains active, and you cannot apply for any new credit. The certificate is what triggers the removal of that flag.
Your debt counsellor is legally required to issue this document once all qualifying accounts are settled. If they are slow to do so, follow up in writing. If they are unreachable or no longer in practice, contact the National Credit Regulator (NCR) directly, as they maintain records and can assist in these situations.
You can learn more about how the debt review process works on our main guide, which covers the full process from application through to completion.
Step Two: The Credit Bureaus Are Notified
Once your debt counsellor has issued the clearance certificate, they are required to notify all major credit bureaus, including TransUnion, Experian, Compuscan, and XDS. These bureaus must then update your credit profile and remove the debt review flag.
This process typically takes five to seven business days, though it can occasionally take a little longer depending on the bureau.
Once the flag is removed, you will no longer appear as being under debt review to any lender who checks your profile. This is the moment your financial life genuinely starts fresh.
It is a good idea to check your credit report yourself after this period to confirm the flag has been removed.
Free credit reports are available through platforms like CreditBoost, TransUnion, and Experian’s consumer portal. If the flag is still showing after ten business days, contact your debt counsellor and the relevant bureau directly to raise a dispute.
Step Three: Your Credit Score Starts Its Recovery
Here is something many people do not realise: the removal of the debt review flag does not immediately give you a strong credit score. Your score at this point will likely be low, reflecting the history of the debt you carried. That is completely normal and entirely fixable.
Credit scores are not fixed numbers. They respond directly to your behaviour, and the period immediately after debt review is one of the most impactful times to start building good habits.
A few things that will move your score in the right direction:
Opening a small credit facility and managing it responsibly. A retail store account or a secured credit card is often the easiest place to start. Use it for planned purchases you can afford, and pay the balance in full every month.
Paying every account on time, every time. Payment history is the single largest factor in your credit score. Even one missed payment can set back months of progress.
Keeping your credit utilisation low. If you have a credit limit of R5,000, try to use no more than R1,000 to R1,500 of it at any given time. Low utilisation tells lenders you are not dependent on credit to get by.
Avoiding multiple credit applications in a short space of time. Each application creates a hard inquiry on your profile, and several inquiries in quick succession can lower your score and raise red flags with lenders.
What Happens to Accounts That Were Not Included in Your Debt Review?
Not all accounts are necessarily included in a debt review plan. Mortgage bonds, for example, are sometimes excluded if the client could still manage those payments. If you had any accounts outside of your debt review that remained in good standing throughout the process, those will continue to reflect positively on your credit profile.
If you are unsure which accounts were included and which were not, your debt counsellor should be able to provide you with a full account of what was covered under the plan. This is also something you can verify by pulling your credit report and reviewing each listed account.
Not There Yet? Here is Where to Start
If you are reading this because you are still struggling with debt and wondering whether debt review is the right option, the best thing you can do is get a proper assessment before the situation becomes more serious. The process is most effective when it begins before accounts go into default and before legal action is taken by creditors.
CONTACT US today and let True North Debt assist you with the debt review process.
Struggling to keep up with your debt?
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