After years of reduced payments, the clearance certificate is the finish line of debt review. It is also the start of a new stage, and what you do next matters.
Here is what the clearance certificate is and how to use it.
What is a clearance certificate?
When all the debts in your debt review are paid, your debt counsellor can apply for a clearance certificate. It confirms that you have completed the process and that the debts included in the plan have been paid.
How do you get a clearance certificate? 4 steps
- Complete the payments under your debt review plan.
- Your debt counsellor confirms that all the debts are paid.
- The counsellor applies for the certificate and gives it to you.
- The counsellor notifies the credit bureaus, so the debt review flag is removed.
Ask your counsellor for a copy and keep it safe. The flag stays on your record until the certificate is issued, so it is the document that clears you.
What does it change?
| Before | After |
|---|---|
| Debt review flag on your record | Flag removed |
| No new credit allowed | You can apply for credit again |
| One monthly payment to a distribution agent | Direct control of your money |
It does not erase your history. Past defaults and payment records stay for their retention periods under the National Credit Regulations.
What if the flag is not removed?
Check your credit report a month or two after clearance. See free credit reports.
If the flag remains:
- Ask your debt counsellor for proof that the bureaus were notified.
- Contact the bureaus with a copy of the certificate.
- Dispute the entry in writing. See credit report disputes.
- Use the Credit Ombud if you do not get a fair answer.
How do you rebuild after a clearance certificate?
Be patient and steady:
- Pay all accounts on time.
- Start with small credit and use it lightly.
- Keep balances low.
- Avoid several applications at once.
See building credit and improving your credit score.
What should you avoid?
- Taking new credit just because you can. See loan affordability.
- Short-term loans for ordinary costs. See emergency loans.
- Companies that charge to “clean up” your record.
How do you stay on track?
Build an emergency fund. See emergency fund. Keep a budget. See how to budget. Keep a copy of the certificate and your debt review records.
Keep your first year simple. Pay every account on time, check your credit report every few months for errors and avoid applying for several credit products at once. Each application leaves an enquiry on your record, and slow, steady use shows new lenders a changed pattern.
Small habits protect the progress you have made. Pay every account on the same day each month, keep a note of every balance and check your report once more after six months. For how the process starts, read debt review.
What happens between your last payment and the certificate?
The final stretch has several steps, and it helps to know who does what. A typical sequence looks like this, though the timing varies:
| Step | Who does it |
|---|---|
| You make the last payment in the plan | You |
| The payment distribution agent pays the creditors and reconciles the accounts | The agent |
| The counsellor confirms that every debt is paid | Your debt counsellor |
| The counsellor applies for the certificate | Your debt counsellor |
| The bureaus are told to remove the flag | The counsellor, with the bureaus |
Ask your counsellor for the steps and the expected dates in writing when you make the last payment. Delays often come from one creditor that is slow to confirm a balance. A polite follow-up every two weeks is reasonable.
What do lenders see on your report after clearance?
A cleared record looks different from the one you started with, but it is not blank. Here is what a lender is likely to see.
| Item | Before | After |
|---|---|---|
| Debt review flag | Present | Removed |
| Accounts in the plan | Showing the review | Shown as settled |
| Payment history | Months of reduced payments | Still visible for its retention period |
| New credit | Blocked | Allowed |
A lender looks at the whole story: a person who worked through a plan, paid it off and now shows steady behaviour. That is a better story than a flag that never went away.
The certificate is the proof, so keep it with your records and have a copy ready if a lender asks.
What does a careful first year of borrowing look like?
You may borrow again, but there is no rush. Here is a roadmap for the first year:
| When | What you do |
|---|---|
| Months 1 to 3 | Check your report and keep to your budget, without new credit |
| Months 4 to 6 | Consider one small account, such as a low-limit store account, and pay it in full |
| Months 7 to 12 | Keep the habit, check the report again and avoid new applications |
A small account that reports to a bureau and is paid on time adds evidence. A big loan in the first month adds risk.
Use loan affordability before any application, and remember that what felt manageable on a plan may not feel manageable with new credit on top.
What should you do with the money you were paying each month?
You may have paid R2,100 a month into the plan for years. That money has a place in your budget, so decide where it goes before it disappears into everyday spending. Here is a hypothetical example.
| Use of R2,100 a month | After 12 months |
|---|---|
| Saved in a separate account | R25,200 |
If your essentials cost R8,400 a month, R25,200 is three months of essentials, and it would have covered many of the emergencies that once pushed you into debt. Start with a smaller amount if you need to, and grow it. See emergency fund.
What if your counsellor does not respond?
You are entitled to your certificate once the debts are paid. If your counsellor goes quiet:
- Write to them, with the dates of your payments and the request, and keep a copy.
- Contact the payment distribution agent, who holds the payment records.
- Ask each creditor for a statement showing a zero balance.
- Complain to the NCR, which regulates debt counsellors, if you still get no answer.
Keep every message. A clear paper trail makes the NCR’s work quick, and it protects you if a bureau still shows the flag.
Frequently asked questions
Do I pay for the clearance certificate?
Ask your debt counsellor about any fees.
Can I borrow right after clearance?
Yes, once the flag is removed, but borrow carefully.
Does a clearance certificate fix my credit score?
No. It removes the flag. Your score improves with time and good behaviour.
What if my counsellor is slow?
Follow up in writing and, if needed, contact the National Credit Regulator.
How long does it take to get a clearance certificate after the last payment?
It varies. It depends on how quickly creditors confirm balances and on your counsellor. Ask for an expected date in writing.
Does the clearance certificate expire?
No. Keep it permanently with your records, as proof that the review was completed.
One free 5-minute form is sent to NCR-registered lenders. Each lender decides for itself and shows you the full cost before you sign.
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