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Short answer: no, you can't remove yourself from debt review. Debt review ends in one of two legal ways: you pay off the debts in your repayment plan and an NCR-registered debt counsellor issues you a clearance certificate, or a court finds that you are no longer over-indebted. There is no form you can fill in yourself, and no letter you can write, that cancels it.
The good news is that once your debts are paid up, getting cleared is quick. At Meerkat, our registered debt counsellors can issue your clearance certificate online, usually within about 10 days.
Why you can't cancel debt review on your own
When you enter debt review, your debt counsellor arranges a restructured repayment plan with your credit providers, and in most cases that plan is made an order of court. Because a court order is in place, only the process set out in the National Credit Act can end it. Stopping payments doesn't end debt review. It puts you in breach of the order, and your credit providers can then take legal action to recover what you owe.
Read more: What happens if I stop paying debt review?
The two legal ways out of debt review
1. Pay off your debts and get a clearance certificate
This is how most people exit debt review. You qualify once every debt in your repayment plan is settled, or any unpaid debt has prescribed. Your home loan (bond) can still be running, as long as it was not in arrears when you entered debt review.
A registered debt counsellor then issues a clearance certificate and sends it to the credit bureaus so the "under debt review" flag is removed from your credit report.
2. Ask a court to declare you no longer over-indebted
If your finances have changed a lot, for example you've started a much better-paid job, a lawyer can apply to court on your behalf to have you declared no longer over-indebted. This route takes longer and costs more than a clearance certificate, and it isn't available in every situation.
Read more: Lawyers that remove debt review in South Africa
How to get your clearance certificate with Meerkat
- Apply online with your ID number.
- Upload your paid-up letters from your credit providers.
- Pay the R1,750 fee.
- We contact your credit providers and the credit bureaus.
- Your clearance certificate is issued, although the credit bureaus can take up to 2 months to clear your record. Then you can start applying for credit again.
Watch Meerkat founder and CEO David O'Brien explain the debt review removal process:
Not sure if you qualify?
If you're not sure whether all your debts are paid up, start by getting a copy of your credit report. You're entitled to one free credit report a year from each registered credit bureau. It shows which accounts are still open and whether the debt review flag is still there.
Read more: How to know if your debt review flag has been removed
Frequently asked questions
Can I take a break from debt review?
No. Your repayment plan is usually a court order, so missing payments puts you in breach of it and your credit providers can start legal action.
Can the NCR remove me from debt review?
No. The National Credit Regulator registers debt counsellors but doesn't remove consumers from debt review. A registered debt counsellor issues the clearance certificate.
Can I pay off debt review faster?
Yes. Ask your debt counsellor about increasing your monthly payment or settling accounts early. The sooner your debts are paid, the sooner you can be cleared.
Is there free debt review removal?
No. A debt counsellor or a lawyer will always charge a fee. Be careful of anyone promising free removal, or removal before your debts are paid.
Can I get credit after debt review?
Yes. Once the flag is removed, you can apply for credit again. Start small so you don't become over-indebted again. Read how to rebuild your credit after debt review.
For the full picture of costs, timelines and options, see our Ultimate Guide to Debt Review Removal in South Africa.
MyMeerkat FSP (Pty) Ltd is an authorised financial services provider (FSP 50979) and a registered debt counsellor (NCRDC2613). This article is general information, not personal financial or legal advice.