Debt review, also known as debt counselling, is a legal process designed to help
South Africans who are struggling to manage their debt. Regulated by the National
Credit Act (NCA), it offers financial protection, affordable repayment plans and peace
of mind to anyone who is over-indebted.

What Is Debt Review?

Debt review is not a loan. Instead, it’s a structured financial rehabilitation programme
managed by a registered debt counsellor. Once you’re under debt review, your
counsellor will negotiate with your creditors to reduce your monthly repayments to an
amount you can realistically afford.

Who Qualifies for Debt Review?

If you are unable to meet all your monthly debt obligations, or if you’re relying on
credit to cover living expenses, you may qualify for debt review. The process is open
to South African consumers with regular income who are over-indebted under the
NCA’s definition.

The Step-by-Step Process

•  Debt Assessment – A debt counsellor reviews your income, expenses, and
• credit commitments.
•  Application – You complete a Form 16, formally applying for debt review.
•  Proposal to Creditors – Your counsellor negotiates reduced interest rates and
• extended payment terms.
•  Court or NCR Confirmation – The repayment plan is legally approved.
•  Single Monthly Payment – You make one consolidated payment, distributed
• by a Payment Distribution Agency (PDA).
•  Clearance Certificate – Once your debt is repaid, you receive a certificate
• confirming your debt-free status.

How You’re Protected

Under debt review, creditors cannot repossess your home, car, or other assets as
long as you comply with your new repayment plan. Collection calls and legal action
must also stop once your application is formally accepted.

Benefits of Debt Review

•  Reduced monthly instalments
•  Protection from creditors
•  Lower interest rates
•  Legal and financial guidance
•  Structured, stress-free repayments

Life After Debt Review

When you’ve completed the process, your debt counsellor issues a clearance
certificate. This document confirms your debt-free status and allows the credit
bureaus to remove the debt review flag from your record.

Conclusion

Debt review is a safe and effective way to regain financial stability without losing your
assets. If you’re struggling to keep up with repayments, speak to an NCR-registered
debt counsellor for a free assessment.