16 Oct Does Debt Review Affect My Ability to Rent a House?
It is fair to consider how debt review will impact you if you are looking to move into a rental property. Life keeps moving, even when you’re working on yourself and taking steps to improve your finances. As a formal process under South Africa’s National Credit Act (NCA), debt review is meant to enhance the lives of over-indebted individuals by providing financial relief. But certain restrictions should be understood.
If you are asking, “Does debt review affect my ability to rent a house?” we are here to break it down. In theory, nothing is stopping you from entering a new lease while under debt review, as renting is not considered a form of credit. On the other hand, most landlords or rental agencies will do a credit check as part of the application process, and will see that you are under debt review.
Debt Review’s Impact on Renting
While debt review can safeguard your assets and peace of mind, you should be aware of how it might hinder certain opportunities. Moving into a rental property during debt review is possible, but it may be harder to qualify when landlords realise you are under debt review. This could mean they will view you as unreliable or struggling financially. But there are ways to improve your chances. Move without stress by maximising your financial freedom through debt review.
Landlords or rental agencies want to know they can count on you to pay your rent without fail. If you earn a stable income, have a good rental history, and can provide solid references, this can count in your favour, even if you are under debt review. Be transparent about your situation – honesty goes a long way in building trust. You can also offer to pay a larger deposit or a few months’ rent upfront to give the landlord peace of mind.
The Debt Review Flag
Wondering how it works? The debt review flag will appear on your credit profile until you complete the process and receive your debt clearance certificate. During this time, you avoid blacklisting with professional help and are on a path to financial recovery. Our team of debt counsellors are registered with the National Credit Regulator (NCR), and is by your side to help you succeed.
To apply for debt review and take the first steps to financial freedom, CONTACT US today. Our Limdebt team will assess your affordability and determine if you are over-indebted and can benefit from the process. We look forward to working with you!