If you undergo a debt check, you cannot be blacklisted by law. As long as you’ve decided on your choice, you can be sure that your debts will be well managed soon enough and you’ll finally get a good night’s sleep. Unlike the blacklist, the debt check doesn’t stay in your permanent credit file. Although your credit report is flagged to prevent you from getting into more debt, it won’t negatively affect your credit report.
Are blacklist and debt review the same?
Although your credit report is flagged to prevent you from getting into more debt, it won’t negatively affect your credit report. During the debt review, you should stick to the repayment schedule and not jeopardize your debt verification program. The term blacklist or blacklisting is often a term that has been used frequently in recent years to define when a consumer is not eligible for new credit facilities. As soon as all of your debts have been repaid, you will receive an approval certificate from your debt advisor, which will inform the credit agencies that you are no longer in debt advice.
How long is a person subject to a debt check?
It is also very important to note that once you have settled and finalized your repayment plan, you must not miss any payments when checking the debt. The advisors at the Debt Review Centre advise and recommend the best course of action to get out of debt. The debt counselor then makes an effort to renegotiate interest rates and repayment terms with your loan providers to lower your debt level.
References:
- Difference Between Debt Review & Sequestration – Insolvency Care
- Will you be Blacklisted if you’re under Debt Review? | Debt Rescue Blog
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.