Are you burdened with debt but dream of owning your own home someday? Getting approved for a home loan on its own requires a good credit score. It is unlikely you will get approved when your debt already exceeds what you can afford.
The first step to home ownership is getting rid of unsecured debt. Debt Review isn’t a life sentence; it’s a temporary, strategic intervention against unmanageable debt. The process provides a path to financial stability and eventual home ownership.
Initiated under the National Credit Act in 2007, Debt Review or Debt Counselling is a structured, supportive process designed for working South African consumers struggling with debt. Offering tailored repayment plans, it aids in managing your financial obligations efficiently while protecting your assets, eventually leading you back to creditworthiness.
Debt Review: A Temporary Process
Once you’ve met your restructured payment commitments and paid off all your debts, a Clearance Certificate is issued, signifying your exit from Debt Review. This certificate is your passport to renewed access to credit, allowing you to rebuild your financial profile positively and responsibly.
With no debts and a healthy financial standing, home ownership isn’t just a distant dream but an attainable goal.
Can I Buy a House While on Debt Review?
During Debt Review, your focus is on clearing existing debts, and your access to additional credit, including home loans, is restricted. This restriction is not a punishment but a protective measure, ensuring you regain control over your finances without accumulating more debt.
However, post Debt Review, with a Clearance Certificate in hand and a disciplined approach to credit, the prospects of home ownership become vividly possible.
Post Debt Review: Path to Property Investment
Once you have received your Clearance Certificate, you will need to start actively working towards improving your credit profile. With debts cleared and a Clearance Certificate obtained, doors to credit opportunities, including home loans, open once again.
Focus on rebuilding your credit score and managing small amounts of credit responsibility. Over time you will be able to prove that you can afford the cost of homeownership, which can be expensive to maintain.
Contact Debt Rescue if you would like to talk to an expert debt counsellor for a free assessment for a reduced single debt repayment.
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