Debt review process

[randomwalsh]

Has anyone had any experience with using a debt counselling services? My biggest concern is that they say once your debt is paid off your record is wiped clean but I have heard otherwise. I am working toward becoming a CA so obviously anything on my credit history might hurt me in the future.

What has your experience been like or do you have knowledge with debt counselling and debt consolidation?

 

[CrazyBob]

All I know is that when I was doing credit checks on an applicant that wanted to rent out a house I owned, it clearly showed on record that he had been under debt review previously, even though he claimed he wasn't any longer.

Perhaps it just cleared his credit rating in the sense that his credit rating score showed 'neutral', but didn't actually remove any trace that he was ever under debt review.

 

[HavocXphere]

You should be able to still become a CA unless you declare insolvency.

However companies do ask about arrangements with creditors (like this) or inability to settle debt on time in the past so that ship has likely already sailed if you're at the stage of considering debt review. So even if it doesn't show an the credit check you'd still be in a tough spot with the declarations as starting your CA career with a fraudulent declaration is kinda bad. Whether HR will consider an application with arrangements marked - not sure. Im sure there are firms out there that won't ask though.

 

[semaphore]

If you go for debt review, your credit record will be impaired.

 

[Captain Morgan]

If you go for debt review, your credit record will be impaired.

Only while he is under debt review.

Once all debt under the debt review have been settled, the credit bureaus will update the credit profile by removing the debt review flag.

 

[Captain Morgan]

Has anyone had any experience with using a debt counselling services? My biggest concern is that they say once your debt is paid off your record is wiped clean but I have heard otherwise. I am working toward becoming a CA so obviously anything on my credit history might hurt me in the future.

What has your experience been like or do you have knowledge with debt counselling and debt consolidation?

While debt review will help to protect your assets from repossession (if no legal action have commenced / there is no court judgement for said debt), I would recommend negotiating with your creditors directly.

Debt review is a lengthy process and will cost you lots of money in the long run.

Should you proceed to apply for debt review, try to pay extra each month along with the normal amount the debt councilor will calculate.

 

[randomwalsh]

I haven't reached the point where I am being forced into debt review. I haven't missed a payment yet so my credit history is still good. Thank you for the advise. I will seek alternate ways to solve this as after payment of debt each month I am left with very very little.

Maybe a second job...