When can I ac­cess credit again af­ter ex­it­ing debt review?

CityPress - - Business -

Lucky writes:

I have been un­der debt review for a year. I am sup­posed to re­main un­der debt review for four years but I think I will be able to set­tle all my debts by next year. Once this is done, how long will it take me to buy a car or a house?

City Press replies:

You can only exit debt review once your debts are paid. Then you are able to ap­ply to the courts to exit debt review. Once that has hap­pened, you are al­lowed to ap­ply for credit again. The fact that you have been un­der debt review will not count against you when ap­ply­ing for credit. In fact, the banks would con­sider it a pos­i­tive that you took ac­tion when faced with fi­nan­cial dif­fi­culty rather than wait­ing for le­gal ac­tion.

The af­ford­abil­ity rules have tight­ened sig­nif­i­cantly since May 2016 so your abil­ity to af­ford the new loans will be very im­por­tant cri­te­ria, but if you have ex­pe­ri­enced what it is like to be overindebted, you will want to make sure that, in fu­ture, you only take on debt you can af­ford.

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