Debt review is one of the most misunderstood things in South African personal finance. Here is what is true, and what simply is not.
Debt review, properly called debt counselling, exists to protect people who cannot meet their obligations. It carries a lot of stigma and a lot of misinformation. Here are the misunderstandings we hear most.
Myth: it is the same as being blacklisted
It is not. Debt review is a formal process under the National Credit Act with a registered debt counsellor. A flag is placed on your record while you are under review, but it is a different thing from a judgment, and it is removed when you complete the process and receive your clearance certificate.
Myth: you are under it forever
There is an end. When your restructured debts are settled and you are issued a clearance certificate, the flag must be removed from your credit record. Many people finish sooner than they expected once payments are restructured to something realistic.
Myth: it ruins your chances of ever driving again
Traditional finance is harder to access while you are under review, which is precisely the gap DriveDiva exists to fill. We assess what you can afford now. Being under debt review is not, by itself, the end of the conversation.
Myth: you should just stop paying and let it lapse
Walking away quietly is the most expensive option available to you. Interest, legal costs and judgments all compound. Speaking to a registered counsellor early keeps far more of your options open.
Myth: nobody will take you seriously again
We have handed keys to women who were certain their situation disqualified them permanently. It rarely does. Ask the question rather than assuming the answer.
This article is general information, not financial advice. For your own situation, speak to a registered debt counsellor.
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