Credit Clearance vs Debt Review in SA: Which Is Right for You?

People often use “credit clearance” and “debt review” as if they’re the same thing. They aren’t. They solve different problems, take different amounts of time, and impact your credit record in opposite directions. Choosing the wrong one wastes money and locks you out of credit longer than you need to be.

Quick comparison

When credit clearance is the right call

Credit clearance is the right service when:

• You’ve already paid off the debt, but the listing is still on your bureau record
• You have prescribed debt that should fall off automatically but hasn’t
• You have a judgment you’ve settled that wasn’t removed
• You’re applying for a home loan or a job and the listing is blocking you
• You believe a listing is on your record in error

This route is fast; under the NCA, the bureau must update within 7 working days of valid proof. The challenge is gathering the right paperwork and citing the correct sections. See our guide to removing your name from the credit bureau for the practical steps.

When debt review is the right call

Debt review (debt counselling) is the right service when:

• You can’t currently meet your monthly debt obligations
• You’re being threatened with legal action or repossession
• You have multiple unsecured debts and your salary doesn’t stretch
• You need formal legal protection from creditors

Debt review consolidates your repayments into one affordable monthly amount and gives you legal protection from creditors taking judgment. The trade-off: you’re flagged as under debt review until the plan is complete, and you can’t take new credit during that time.

Can you do both?

Yes, but in sequence. Most people start with debt review to get out from under unaffordable repayments, then use credit clearance at the end to remove the debt-review flag once the clearance certificate has been issued. They are complementary, not competing.

Costs

Credit clearance is typically a once-off fee per listing or per bureau. Debt review fees are regulated by the National Credit Regulator and are paid monthly out of your restructured repayment, you don’t pay them on top.

The right starting point for you

Two questions decide it:

1. Can you afford your current monthly debts? If no → debt review. If yes → likely credit clearance.
2. Is anything still legally active against you? If yes → debt review (or rescission if you’re already in review). If no → credit clearance.

Picking wrong is expensive — debt review when you didn’t need it locks you out of credit for years; credit clearance when you can’t afford your debts just clears flags that come straight back. A 5-minute conversation usually settles which route makes sense.