It is possible to secure financing for a vehicle after a retraction, but it will be harder for you to find lenders. After completing the debt review process, you may need to wait at least a few days for the approval certificate to buy a car to be completed. There are a few car rental companies in South Africa that lease cars, so it’s best to look for the cheapest option. So you should wait and repair your credit for at least a month before you apply for a new car loan.
Your first priority should be to pay off your debts as quickly as possible when you’re in debt counseling. However, if you desperately need a car to earn a living, you need to compare your car rental costs with your current transportation costs to make sure you take advantage of all saving tips and strategies to keep your spending as low as possible.
How long does it take for the debt review to be completed?
In this regard, you should generally be debt-free within 3-5 years and issue an approval certificate. The specific number of years that a negative credit mark is valid on your credit report depends in part on the type of debt in question. In this case, you can see that the debt check can be used to gain time if the consumer is struggling to service their debts due to a lower income due to a spouse’s job loss or due to a drop in business income. Unsecured debts such as credit card debt and personal loans are usually sent to a collection agency or can even be processed in-house.
Can I apply for a credit card during the debt check?
This is to prevent you from getting into more debt as the purpose of the debt check is to reduce your debt and work towards becoming debt-free. We’ve selected the best credit cards so that they’re most helpful to a wide range of readers. It does not cancel taxes owed or child support obligations, and it is very unlikely that student loan debt will be forgiven. Payment history and credit utilization are the most important factors when calculating your credit rating. Therefore, these two steps can help you rebuild your credit.
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Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.