Can I apply for more credit or use my credit cards while under debt review?

Debt counselling is a debt rehabilitation process, which enables South African consumers to take control of their financial situation and bring them back to financial well-being.

Clients will not be allowed or able to apply for more credit or use their credit cards, while under debt review. DebtBusters asks client’s to destroy all their credit cards or return them to their credit providers, in order to prevent them from being tempted to take out additional credit and further deteriorate their financial situation.

Clients that fail to adhere to the requirements and take out further credit during the plan will face serious repercussions. Credit providers may terminate the client’s debt review and start legal proceedings.

Once you have completed the debt counselling process, a clearance certificate will be issued to you, which will state that you have been rehabilitated through the Debt Counselling process. This will be used to remove all listings from your credit bureaus that you are under Debt Counselling, as it will state that you have solved your debt problem. You will then be able to take out credit.

A Form 17.4, will be issued in addition to this, which is a debt counselling cancellation form. This will also remove you from all credit bureaus. If you wish to cancel your debt review, before you have paid up all of your debt, your outstanding debt will remain and you will resume to the original instalments.

A Clearance certificate needs to be issued meaning you have been rehabilitated through the Debt Counselling process, this will remove all listing from credit bureaus that you are under Debt Counselling.

If you are still under Debt Counselling you will not be able to access any form of finance as this will violate the contract you have with your current creditors. If you have received your clearance certificate or cancelled your Debt Counselling you will then be able to apply for finance through the usual process.