Can I rent a home when under debt review?
The GOOD news is: YES.
We at Consumer Debt Support (CDS) came to realize that we are faced with this question almost every month when consumers in debt review are struggling to rent a home while being under debt review.
It is a major concern this misconception that debt review is like a judgement or a black listing against an individual’s credit record applying to rent a home.
With this week’s blog, we hope to achieve a positive way forward that debt review is a good program. We can confirm that most of our applicants for debt review have very good credit records.
Renting a property is still possible while under debt review. Just make sure it is within your means and affordable. As debt review is not a credit agreement itself, clients can still rent affordable property while under the program.
We at Consumer Debt Support (CDS) can provide the landlord or letting agent with proof of a budget and allowance for the rental amount, which most agents accept.
By the way, many real estate agents do not understand the National Credit Act (NCA), neither do they realise that according to the NCA a consumer may not be discriminated against while under or after debt review.
This allows CDS to best fulfil our obligation towards the consumer’s budget duties while ensuring affordability.
When entering a rental agreement, it is important to understand it is a service agreement between yourself and lessor or the landlord.
In most cases the agent is employed by the lessor or landlord to fulfil the mandate to find suitable tenants for their property and ensure all the criteria is met (clean ITC, no black-listing and good references with proof of income).
The fact is: a debt review is not a credit agreement itself, but an agreement where creditors agreed to accept lower affordable payments.
These payments are restructured into a new payment plan that is then made a restructured consent order by a Magistrates court or the National Consumer Tribunal.
Debt review flagging on the ITC is not black-listing or a stigma branding and may not be used against a consumer for the sake of a rental agreement.
The purpose of the flag is to ensure that registered credit providers do not grant the consumer further credit on loans, credit cards, overdrafts et cetera.
An important fact is that when the consumer defaults in the debt review payment plan, the debt counsellor must bring it under the attention of the lessor or agent. Consumers applying for rental agreements need to ensure they remain responsible towards their creditors while in debt review to ensure the debt counsellor can fulfill their mandate.
In conclusion: we at CDS is always there for you. Please do not hesitate to contact us https://www.debtcenter.co.za/contact-us/ with any questions in this regard.