Rynhardt de Lange, Director & Head of Legal at Milaw Legal

With household debt now topping a staggering R2.56 trillion and more than 717,000 South Africans stuck under debt review, many consumers are desperate for a way out. But as Rynhardt de Lange, Director & Head of Legal at Milaw Legal, warns, “too many people don’t actually understand what their debt review status means—or how to get out of it safely.”

Debt review, designed as a lifeline for over-indebted consumers, is increasingly leaving people trapped long after they’ve regained stability. “We’ve seen clients who paid off everything two years ago yet still can’t qualify for something as simple as a cell phone contract, let alone a home loan,” de Lange explains.

The problem is compounded by the country’s alarming debt burden. The average South African spends nearly 70% of their take-home pay on debt repayments—a figure that soars to 76% for those earning under R5,000 per month. “When so much of your salary goes to debt, it’s no surprise that people turn to debt review for relief. But eventually, everyone wants their financial freedom back—and that’s where things get tricky,” he says.

The legal way out

According to de Lange, there are only two legal processes to exit debt review—and neither involves a quick or automatic removal:

No Court Order Yet?

If your debt counsellor has not yet obtained a court order (with Form 17.2 filed), you can apply to the Magistrate’s Court to have their recommendation of over-indebtedness rejected. This essentially means asking the court to rule that you are not over-indebted, stopping the debt review process before it becomes a formal court order.

Court Order in Place?

If your profile is marked as “D4” and a court order has been granted, the only legal way forward is through Section 71 of the National Credit Act. This means you’ll need to fully settle all debts under debt review and then obtain a clearance certificate (Form 19) from a registered debt counsellor. Once you have it, the certificate must be sent to all credit bureaus so your profile can be updated.

“There are no shortcuts once a court order is in place,” de Lange stresses.

Beware the scammers

De Lange also warns of scam artists promising instant or “free” removals. “If someone claims they can delete your debt review status without a court order or certified clearance, it’s a scam,” he says. Not only do such promises often involve fake clearance documents and identity fraud, but they could leave you in an even worse financial position.

How to protect yourself

De Lange shared practical steps for those wanting to exit debt review safely:

• Check your status: Are you flagged “D4” or not?
• Use legal channels: Only the court or an NCR-registered debt counsellor can remove your debt review status.
• Get a clearance certificate (Form 19) after full payment and ensure credit bureaus update your profile.
• Avoid “too good to be true” offers—because they usually are.
• Investigate potential refunds: Courts are upholding consumer protections, and you may be entitled to claim back overpaid interest.

“Debt review was created to protect you. But if you’re ready to exit, do it the right way. Don’t let scammers take advantage of your situation.”

ENDS