![]() What is the difference between debt review and blacklisting?ĭebt review is a legal process that helps over-indebted South Africans become debt-free. And based on your repayment history, alongside other factors, a creditor will grant you access to credit based on your financial history.Īlthough blacklisting does not technically exist, a bad credit history will hurt your financial situation. Your credit report allows creditors to see exactly what your credit behaviour looks like. In other words, it’s a negative mark on your name caused by defaulting on repayments, for example. Technically blacklisting does not exist anymore, but the term is still widely used to describe an “impaired” credit record. But what is the difference between debt review and blacklisting? And how do they affect your financial situation? What does it mean to be blacklisted? Instead, debt review protects you from being blacklisted. So no, you won’t be blacklisted if you’re under debt review. Your credit score will be reset back to zero. As soon as your name has been cleared from the debt review process you can start rebuilding your financial situation from scratch. Once you’ve paid off all your debt you will receive a clearance certificate and your name will be cleared from the debt review process. If you are blacklisted and you decide to apply for debt review, your credit report will most likely already be negatively affected and may take a few years to restore to normal.īut unlike being blacklisted, debt review will be removed from your name as soon as you’ve settled all your debt. Once you’re under debt review you will be protected under the NCA which will legally protect you from being blacklisted. Debt review, or debt counselling, was introduced in 2007 by the National Credit Act (NCA) to help prevent South African consumers from being blacklisted.
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