How Long Will the Debt Review Flag Last?

paying back debtThe debt review process can be a challenge, but its main purpose is to assist in managing debts and ultimately achieving financial stability and recovery.  Many people wonder how long it will take to remove the debt review flag from their credit report once you have completed the process.

In this blog we are going to discuss the key factors affecting the duration, what you can do to receive your clearance certificate and to ensure that your debt review flag is successfully removed from your credit report.  

Factors That May Prolong The Debt Review Process: 

  1. Amount of Debt: The total amount of your debt can directly affect your repayment period. The higher your debt, the longer repayment period you will have.   
  2. What you can afford: The amount of debt that you can pay off each month will depend on your income and your new repayment plan. The more you can to pay towards your debt will assist in shorting the debt review process.
  3. Negotiated Rates: Your interest rates and fees will be negotiated during the debt review process. This can assist in shortening your repayment time. 
  4. Creditor Agreement: During debt review your debt counsellor will negotiate a new repayment plan which includes reduced interest rates and fees. Creditors will either accept or decline the newly proposed plan which can also increase the duration. 

When will the Debt Review Flag be Removed? 

1) You have to fully complete the entire debt review process. 

Debt review will last until you have paid off all your outstanding debts. Excluding your bond which must be up to date. Depending on what you owe and how much you can afford to pay back each month, can have an impact on the duration. It is important to always pay your debt according to your negotiated repayment plan in order to successfully complete your debt review process. 

2) When will you receive your clearance Certificate? 

paid in fullIn order to receive your clearance certificate also known as a Form 19, all your debts must be paid in full and proof thereof received. Your debt counsellor will then provide you with the clearance certificate. Receipt of your clearance certificates will show the credit bureaus that you have fully settled your debt, successfully completed the debt review process in full and that the flag can be removed from your credit profile.

3) When will my status be updated by the Credit Bureaus? 

When you receive your clearance certificate your debt counsellor will also forward it to all the credit agencies. To ensure that your credit report has been updated and the flag removed make sure to check with your debt counsellor as well as the credit bureaus. The NCR ( National Credit Regulator) allows up to 21 business days for the credit bureaus to update your profile after they have received your clearance certificate. 

What can you do  to ensure the removal of the Debt Review Flag? 

  • View your credit report regularly:  Make sure that all your details are correct and that the removal of the flag was allocated. This can assist you to avoid any further issues and allows you to be in control of your financial recovery. 
  • Try and resolve any issues: We would advise you to act quickly and fix any errors that might have occurred in your credit report. This unfortunately can have an affect on your credit score. 
  • Track your progress: By seeing positive changes in your credit score will encourage and motivate you to reach all your new financial goals. 

Is there anywhere to check if your flag has been lifted? 

It is easy to request and review your credit report in the comfort of your own home.  We have listed all the agencies including Debt Rescue, where you can get your free credit report from. 

  • Debt Rescue offers a free credit report on their website.
  • TransUnion allows you to request one free credit report per year
  • Experian also provides you the ability to request your credit report.
  • XDS offers a consumer focused credit report. 

How can you achieve financial recovery? 

Being fully aware of each step in this process will help you successfully complete the debt review process and ultimately the removal of the flag on your credit profile.  

  1. Stay Committed to the process;  By strictly following your new repayment plan you will ensure completion of the debt review process and receive your clearance certificate. 
  2. Keep in Contact: Always ensure that your debt counsellor is fully aware of any changes in your financial situation and always provide all updated documents. This will ensure that all your paperwork is processed correctly.  
  3. Regularly review your Credit Report: By reviewing your credit report you can ensure that all updates are correct once you have completed the debt review process. 
  4. Be Aware of your Rights:  By understanding your rights and responsibilities under the National Credit Act, you will ensure that there are no misunderstandings or delays to lift the debt review flag. 

Debt Rescue on LaptopBy doing your part regarding your debt repayment plan, communicating with your debt counsellor and checking your credit profile regularly, you will recover financially and start your debt free life. 

How can we help you? 

Are you struggling with debt while earning an income? If so, let our expert debt counsellors provide a no-obligation, cost-free assessment to consolidate and reduce your monthly repayments for immediate financial relief.

Contact us to speak with our expert counsellors and start your journey toward financial freedom.

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