What is PG Blocked?
PG blocked, or Personal Guarantee block, is a type of restriction placed on South African consumers when they fail to settle their debts with creditors. It prevents the consumer from taking out any further credit until the debt has been settled. This could be anything from a loan or store account to a mortgage or car finance agreement. The creditor will place this restriction as part of their recovery process for reclaiming unpaid money and can cause difficulties for individuals who are looking to take out future credit products in order to build up their credit score.
How To Remove A PG Block
The first step in removing your PG block is by getting in touch with your relevant creditor – whether that’s a bank, store card provider, utility company etc – and coming to an agreement over how you will repay them what you owe them. Once an agreement has been reached then the creditor should be able to remove the personal guarantee block at no extra cost within 30 days (although this time frame may vary depending on individual lenders). If it’s not possible for you to pay off your debt immediately then there are other options available such as applying for consolidation loans which allow you combine all of your outstanding debts into one manageable monthly payment plan at reduced interest rates. There are also debt advisory services available that can help negotiate affordable repayment terms with creditors on behalf of consumers who are struggling financially due manage multiple debts effectively without falling into arrears again in future months/years ahead.
How Long Does It Take For My Credit Score To Recover After I Have Settled My Debts?
Once all outstanding payments have been made and the personal guarantee restrictions have been removed from your account(s) it may take several weeks before these changes reflect on your credit report; however if everything goes according plan then expect improvements after around 6-12 months provided that all new financial commitments taken on during this period have also been settled promptly and consistently each month (i.e paying bills & instalments etc). Additionally as soon as any negative items pertaining too overdue accounts start dropping off from 3 years onwards then this should positively impact upon ones overall rating even more so than previously mentioned (assuming no other major issues arise between now until then).
Conclusion
Removing a personal guarantee block isn’t always easy but it can be done if approached correctly by settling outstanding balances while actively managing current financial obligations responsibly going forward – thus helping rebuild one’s reputation back up amongst potential lenders who want assurance that said individual won’t default once again like before in past instances where nonpayment was frequent occurrence prior too finally tackling root causes via proactive measures put forth here today shown above & beyond expectations expected throughout entire duration required herein aforementioned summary concluded accordingly
