Quick Facts

• Clearance certificate costs around R3,000
• Credit bureaus update within 20 business days
• Only NCR-registered debt counsellors can issue clearance
• You must settle all short-term debts first
• Free debt review removal does NOT exist

What Is Debt Review?

Debt review is a legal process created by the National Credit Act. It helps South Africans who cannot pay their debts. A registered debt counsellor looks at your money situation. They negotiate lower monthly payments with your creditors.

When you are under debt review, a flag appears on your credit record. This flag stops you from taking new loans or credit cards. You are protected from your creditors taking legal action against you.

Debt review is NOT permanent. Once you pay your debts or your money situation improves, you can exit. But you must follow the proper legal steps to remove the flag.

Two Legal Ways to Exit Debt Review

The National Credit Act allows only two legal ways to exit debt review. You cannot just remove yourself or write a letter. A lawyer cannot simply remove you either, despite what some advertisements claim.

Option 1: Clearance Certificate (Form 19)

This is for people who have paid all their debts. Your debt counsellor issues a Form 19 clearance certificate. This proves you settled everything under your debt review plan.

You qualify when:

• All short-term debts are fully paid
• Your home loan is up to date (if you have one)
• You have paid-up letters from all creditors
• All debt counselling fees are settled

Option 2: Court Application

This is for people who are no longer over-indebted but still owe money. You apply to a Magistrate’s Court to prove you can afford original payments again.

You might qualify when:

• Your income has increased significantly
• You received an inheritance or lump sum
• You can now afford original creditor instalments
• You were placed under debt review by mistake

✅ Getting Your Clearance Certificate

The clearance certificate is your official proof that debt review is finished. Only an NCR-registered debt counsellor can issue this document. Follow these steps carefully.

Step 1: Settle All Debts

Pay all accounts that were under debt review. Your home loan does not need to be paid off. It just needs to be up to date with no arrears.

Step 2: Get Paid-Up Letters

Contact each creditor listed under your debt review plan. Request a paid-up letter confirming the account is settled. Keep these letters safe.

Step 3: Contact Your Debt Counsellor

Give your paid-up letters to your debt counsellor. They will verify everything with creditors. Then they issue your Form 19 clearance certificate.

Step 4: NCR and Credit Bureau Updates

Your debt counsellor submits your clearance to the National Credit Regulator. The NCR updates its database. Then credit bureaus update your credit report.

Exiting Early Through Magistrate’s Court

You can apply to court if you still owe money but your financial situation has improved. This process requires legal help from an attorney or NCR-registered debt counsellor.

When This Option Works

• You got a better-paying job and can afford original instalments
• Your financial circumstances changed dramatically
• You want to settle accounts faster than the debt review plan
• You were incorrectly placed under debt review

What You Must Prove

The court needs evidence that you are no longer over-indebted. You must show:

• Recent payslips showing increased income
• Bank statements proving financial stability
• Proof you can afford original creditor payments
• Evidence of changed circumstances

Your attorney or debt counsellor prepares the court application. They file it at the Magistrate’s Court. If approved, you receive a court order. This order allows the debt review flag to be removed.

⚠️ What It Costs to Exit Debt Review

As of December 2025, these are typical costs for exiting debt review legally. Beware of anyone charging much more or offering free services.

Service	Typical Cost (2025)	Notes
Clearance Certificate (Form 19)	R3,000	With paid-up letters
Clearance Without Paid-Up Letters	R3,500 – R4,500	Extra admin work needed
Court Application (Legal Fees)	R3,000 – R8,000	Depends on case complexity
Court Application (High-End)	R8,000 – R30,000	Very complex cases only
Transfer to New Debt Counsellor	R3,000 – R3,500	If original counsellor unavailable

How Long the Process Takes

Understanding timeframes helps you plan properly. Here are realistic timelines for December 2025 based on current regulations and industry practices.

Clearance Certificate Timeline

• Debt counsellor issues certificate: 3-6 weeks after receiving your documents
• NCR database update: 7-10 business days
• Credit bureaus update records: 7-21 business days (legally required: 20 business days)
• Total typical time: 30-60 days from receiving paid-up letters

Court Application Timeline

• Preparing documents: 2-4 weeks
• Filing with court: 1-2 weeks
• Court hearing date: 2-4 months (depends on court schedule)
• Order processing and notification: 2-3 weeks
• Total typical time: 3-6 months

🚨 WARNING: Avoiding Debt Review Exit Scams

As of 2025, debt review exit scams are increasing in South Africa. Scammers target desperate people who want their credit records cleared. The National Credit Regulator has issued warnings about these scams.

Red Flags – Never Trust Anyone Who:

• Promises instant or overnight removal – The legal process takes weeks
• Offers free debt review removal – There are ALWAYS legitimate fees
• Says you don’t need to pay your debts – This is illegal
• Cannot show NCR registration – All debt counsellors must be registered
• Demands large upfront cash payments – Especially via CashSend or personal accounts
• Avoids explaining the legal process – Legitimate counsellors are transparent
• Claims lawyers can simply remove you – This is misleading
• Promises removal without court order or clearance certificate – Legally impossible

Common Scam Tactics in 2025

Scam Type	How It Works
Fake Clearance Certificates	Fraudsters issue fake Form 19 documents that credit bureaus reject
Unregistered “Counsellors”	People claiming to be debt counsellors but not registered with NCR
Fee-Upfront Scams	Take thousands in advance then disappear or do nothing
Illegal Flag Removal	Claim to “hack” or remove flags illegally – this damages your record
Prescription Scams	Falsely claim your debt has prescribed when it hasn’t

How to Protect Yourself

1. Verify NCR registration: Check the NCR website at ncr.org.za or call 0860 627 627
2. Get everything in writing: Request detailed contracts and fee breakdowns
3. Check online reviews: Search for complaints on consumer protection sites
4. Ask for credentials: Legitimate counsellors will show their NCR certificate
5. Report suspicious operators: Contact the NCR immediately

✅ Where to Get Legitimate Help

Only work with NCR-registered debt counsellors and accredited attorneys. Here are official resources for South Africans seeking to exit debt review in 2025.

National Credit Regulator (NCR)

The official regulator of debt counselling in South Africa.

• Toll-Free Number: 0860 627 627
• Main Number: 011 554 2700
• Email: info@ncr.org.za
• Complaints Email: complaints@ncr.org.za
• Website: www.ncr.org.za
• Verify Debt Counsellors: Check registration on NCR website

Credit Bureaus

Contact these bureaus to verify your credit report after clearance:

• TransUnion: 0861 482 482 / www.transunion.co.za
• Experian: 0861 105 665 / www.experian.co.za
• XDS: 011 645 9800 / www.xds.co.za
• Compuscan: 0861 514 131 / www.compuscan.co.za

Consumer Protection Agencies

• National Consumer Commission: 0860 003 600
• Financial Sector Conduct Authority (FSCA): 0800 110 443 / www.fsca.co.za
• South African Banking Risk Information Centre (SABRIC): For scam reports

Free Credit Reports

You are entitled to one free credit report per year from each bureau. Request yours to check your debt review status.

Your Step-by-Step Action Plan

Follow these steps in order to exit debt review successfully and legally in 2025.

Phase 1: Check Your Situation

1. Get your free credit report from any bureau
2. Check which accounts are under debt review
3. Verify all debts are paid or assess affordability
4. Contact your original debt counsellor if reachable

Phase 2: Choose Your Exit Route

If all debts are settled:

• Collect paid-up letters from all creditors
• Contact NCR-registered debt counsellor
• Apply for Form 19 clearance certificate
• Budget R3,000 for clearance fees

If you still owe but can afford original payments:

• Gather proof of improved finances
• Contact NCR-registered counsellor or attorney
• Prepare court application
• Budget R3,000-R8,000 for legal fees

Phase 3: Complete the Process

1. Work with your chosen professional
2. Submit all required documents
3. Pay agreed fees (get receipts)
4. Wait for NCR and bureau updates (30-60 days)
5. Check credit report after one month
6. Follow up if flag not removed after 60 days

Phase 4: Rebuild Your Credit

• Wait 3-4 months before applying for new credit
• Start with small, manageable credit (e.g., store card)
• Pay everything on time every month
• Keep credit utilization below 30%
• Monitor your credit report regularly

⚠️ Important Things to Remember

• You cannot remove yourself from debt review. Only a registered counsellor or court can do this.
• Free removal does NOT exist. Legitimate services have regulated fees around R3,000.
• The debt review flag does not disappear automatically. Even if years pass without payment.
• Lawyers cannot simply remove you. They can help with court applications only.
• Writing a letter will not work. The legal process must be followed.
• Your payment history stays for 2 years. Even after clearance.
• You cannot get new credit while under debt review. This is legally prohibited.
• If your counsellor disappeared, transfer to a new one. Don’t pay scammers instead.

Common Questions About Exiting Debt Review

Can I remove debt review myself?

No. Only an NCR-registered debt counsellor can issue a clearance certificate. Or a Magistrate’s Court can issue an order. You cannot remove the flag yourself.

How long after clearance can I apply for credit?

Technically after one week. But credit bureaus take 7-21 business days to update. We recommend waiting 3-4 months to rebuild your credit score first.

What if my debt counsellor closed or won’t help?

Transfer to a new NCR-registered debt counsellor. They can access your records and issue clearance. This costs around R3,000-R3,500.

Does debt review ruin my credit forever?

No. Once you complete the process and receive clearance, you can rebuild. Most people recover within 12-24 months of responsible credit use.

Can I exit if I only paid some creditors?

No. You must settle ALL accounts that were under debt review. Your home loan just needs to be up to date, not paid off.

What if credit bureaus don’t update after 60 days?

Contact your debt counsellor first. Then lodge a complaint with the NCR at 0860 627 627. Credit bureaus legally must update within 20 business days.

Exiting debt review legally protects your financial future. While it takes time and costs money, following the proper process ensures your credit record is truly clear. Shortcuts and scams only create more problems.

Our top advice:

• Only work with NCR-registered debt counsellors – verify on ncr.org.za first
• Budget R3,000 for clearance or R3,000-R8,000 for court applications
• Get everything in writing before paying any fees
• Be patient – the legal process takes 30-60 days minimum
• Check your credit report 30 days after clearance to confirm update
• Report scams immediately to the NCR at 0860 627 627
• Wait 3-4 months before applying for new credit
• Learn from the past – avoid over-committing to debt again

Debt review helped you when you needed it. Now exit properly and build a stronger financial future for yourself and your family.