Debt Intervention – Part 3

Can a consumer apply for credit after debt intervention?

In order to be able to apply for credit again a consumer needs to have completed a few very specific steps.

1. The consumer needs to complete the debt intervention successfully by fully settling the accounts included or having those account extinguished.
2. The consumer also needs to illustrate that they have improved their knowledge on managing finances through attending financial literacy training.
3. The consumer’s financial situation must have improved.
4. The consumer needs to apply for rehabilitation.
5. The NCR must notify all credit bureaus and relevant credit providers of the consumer’s rehabilitation and issue a clearance certificate.

Can a Debt Intervention be terminated?

Yes. If a consumer’s debt has been restructured through debt intervention, and the consumer defaults, the credit providers has the right to terminate the debt intervention.

Are any credit agreements excluded from debt intervention?

Having secured agreements will disqualify the consumer from applying for debt intervention. There are certain credit agreement types which are only considered to make up the balance of the R50 000 total but will be excluded from the restructuring. These are developmental credit agreements and credit agreements where the credit provider has started legal proceedings.

Don’t forget to read Part one and Part 2 in this series about Debt Intervention