Summary
Debt counselling, also known as debt review, is designed to help you regain control of your finances through a structured repayment plan and legal protections. The process generally concludes once you meet the requirements for a clearance certificate, although there are limited circumstances in which debt review may not proceed. Because debt review is governed by the National Credit Act (NCA) and National Credit Regulator (NCR) guidelines, consumers generally cannot withdraw simply because they have changed their minds. Understanding your options can help you work towards the best possible outcome. Dealing with debt can feel challenging at times, but you don’t have to face it alone. With the right support and a structured repayment plan, it’s possible to reduce financial pressure and work towards a more secure future.
Debt counselling is designed to help consumers repay debt in a structured and legally protected way. If you’re wondering whether you can leave debt review, what your rights are, or how the process ends, it’s important to understand the legal routes available.
Why staying in debt counselling is worth it, even when it’s tempting to leave
Staying in debt review means you keep the benefits that help you stay in control of your finances:
One affordable monthly repayment: Instead of making separate payments to multiple credit providers, you make a single payment, which is distributed to your creditors. If your finances improve, you can voluntarily increase your payments to complete the process sooner.
More manageable repayments: You may pay up to 50% less in monthly instalments than your original monthly debt obligations when working with DebtBusters.
Lower interest on unsecured debt: DebtBusters counsellors negotiate directly with credit providers to reduce average interest rates on unsecured debt from 22.3% to roughly 2.3% per year, helping to make your repayments more affordable.
Legal protection: You retain important legal safeguards, including protection from collection action, for as long as you remain under debt review.
A break from new credit: Pausing new credit allows you to focus on reducing existing debt and building a stronger financial position.
These benefits are possible because debt counsellors negotiate with creditors on your behalf, securing more affordable repayment terms.
Under current NCR guidelines, consumers generally cannot withdraw from debt review simply by changing their minds, so the best way to protect these benefits is to see the process through.
If you’re struggling with your repayments, speaking to your debt counsellor can help you understand your options.
How a clearance certificate helps clear your credit report
One of the most common questions consumers ask is how to have the debt review listing removed from their credit report.
When you enter debt review, the NCR and credit bureaus record this on your credit profile, and the listing remains visible to lenders until the process has been properly completed. Simply stopping payments or attempting to leave debt review does not remove the listing.
Completing the process and obtaining a clearance certificate is generally the route to having the listing removed, once the relevant requirements have been met.
Read our full debt counselling guide for more on how the process works from start to finish.
How to complete debt counselling and obtain a clearance certificate
Debt counselling can only end through specific legal processes set out in the NCA and NCR guidelines.
In most cases, debt review continues until you qualify for a clearance certificate by meeting the necessary legal requirements.
Before a court has approved a debt repayment arrangement, there are limited circumstances in which debt review may not proceed. For example, if the debt counsellor determines that you are not overindebted, the application may be rejected. The relevant records will then be updated and the credit bureaus notified.
If the debt counsellor has already found you overindebted but no debt rearrangement order has yet been granted, the Magistrates’ Court may still reject the proposal and find that you are not overindebted.
Once a debt rearrangement order or consent order has been granted, the ordinary route out is a Section 71 clearance certificate, issued after you have met the statutory requirements.
Note the following:
You may complete debt review through a clearance certificate once you have satisfied all obligations under the rearranged credit agreements. A home loan is the exception. It doesn’t need to be settled in full, as long as it has no arrears and you can meet future payments.
Once a Magistrates’ Court has granted a debt rearrangement order, the NCR withdrawal guidelines state that the only way to exit debt review is through a Section 71 clearance certificate. A court can no longer declare that you are not overindebted.
Knowing your rights and responsibilities while under debt counselling
By law, credit providers must send periodic statements of account. Depending on the type of credit agreement, you may not receive a statement every month, so check the statements you receive against your Payment Distribution Agency (PDA) statement, which shows how your monthly payment has been allocated to creditors. Query any differences. In some cases, credit providers have included fees on statements that were not part of the court agreement.
Stopping your payments does not remove your debt. Instead, it can lead to increased pressure from creditors, higher repayments, and the risk of falling back into financial distress.
You have options if your debt counsellor isn’t meeting your expectations
If you’re unhappy with your current debt counsellor, you can continue with debt counselling while getting the support you need.
You are legally entitled to transfer to another registered debt counsellor at any stage during the review process. For example, you may have concerns about poor service or discrepancies on your PDA statements.
Transferring to a DebtBusters debt counsellor allows you to retain the protections and repayment arrangements already in place, while receiving clear, supportive, judgement-free guidance.
Contact DebtBusters to discuss your situation before making a decision.
If transferring doesn’t resolve your concerns, you can lodge a complaint against your debt counsellor with the NCR if:
You’ve been placed under debt counselling without due process
Your debt counsellor is not assisting you and does not provide you with the required information
Your PDA statements do not match the credit providers’ statements
The NCR commits to resolving complaints within 90 days, depending on the nature and complexity of the complaint. Email complaints@ncr.org.za to lodge a complaint.
Depending on the circumstances, the NCR may investigate whether the debt review application was handled correctly. If the NCR finds that the consumer did not enter debt review through the proper process, the debt counsellor must update the Debt Help System and notify the relevant parties.
Frequently asked questions
Can I change my mind after applying for debt review?
Debt review is designed to continue until the process has been properly completed or another recognised legal outcome is reached. Once you’ve applied for debt review, you generally can’t withdraw just because you’ve changed your mind. Before a court order is granted, debt review may end if a debt counsellor or court determines that you’re not overindebted. Once a court order has been granted, the main route out of debt review is to meet the requirements for a clearance certificate.
Will debt counselling stay on my credit record if I leave?
Cancelling debt review doesn’t automatically clear your credit record. The “under debt review” listing remains on your credit profile until the relevant NCR credit bureau records have been updated. This usually happens after you’ve completed the process and received a clearance certificate. Simply stopping payments or trying to withdraw won’t remove the listing or allow you to apply for new credit.
Can I settle my debts early to complete debt counselling sooner?
Yes, you may be able to complete debt counselling sooner by settling your debts early. If you receive extra money, such as a bonus, inheritance, or payout, you can use it to reduce your qualifying debts faster. Once you meet the requirements and your debt counsellor has the necessary proof, they can issue a clearance certificate. If you have a home loan, it doesn’t necessarily need to be paid off in full. It must be up to date, with no arrears, and you must be able to keep up with future repayments. Read more about what happens once debt review is over.
What happens if I stop making my debt repayments?
Stopping your payments does not end debt review and can put important benefits at risk. Depending on your situation, you could lose negotiated repayment arrangements, lower interest rates, and legal protections associated with the process. Creditors may also take steps to recover the money owed. If you’re struggling to make your payments, reach out to your debt counsellor as soon as possible to discuss your options.
Are you willing to give up the legal protection, extra cashflow, and lower interest rates and go it alone on your debt repayment journey only because you want to avoid making your monthly repayments?
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