What debt review is, how the process works, what it costs, and what you can and can't do while under debt review.
Legal protection
Yes — NCR Act
New credit allowed?
No
Monthly fee (max)
R450/month
Average duration
3–6 years
Debt Review vs Debt Consolidation — Key Differences
Feature
Debt Review
Debt Consolidation Loan
Legal protection from creditors?
Yes — once court order granted
No
Credit bureau listing?
Yes — flagged as under review
No (unless default already listed
Can take new credit?
No
Yes (with caution)
Interest rate reduction?
Negotiated — often significant
Depends on new loan rate
Suitable for?
Severely over-indebted
Moderately indebted, good credit
Regulated by?
NCR, National Credit Act
Credit providers, banks
Cost structure?
Regulated fees from payment
Loan origination fees + interest
Debt Review Process — Step by Step
Step
Action
Timeline
1
Apply to registered NCR debt counsellor
Day 1
2
Counsellor assesses income vs obligations
Days 2–5
3
Creditors notified — 60-day protection begins
Day 5
4
Restructured repayment plan proposed
Days 5–30
5
Magistrate's court issues consent order
1–3 months
6
Single monthly payment to PDA begins
After court order
7
Pay off all restructured debt
3–6 years typically
8
Clearance certificate issued (Form 17.W)
On completion
The Real Impact of Debt Review on Your Life
Debt review is a serious step that affects your financial life for years. It's not a magic solution — it's a structured repayment plan that requires discipline and patience. The upside is genuine: your consolidated monthly payment is typically lower than the sum of your current minimum payments, you're legally protected from creditor harassment, and you have a clear path to becoming debt-free.
The downsides are equally real. You cannot access any credit during the review period. No home loan, car loan, credit card, or even a retail account. If a genuine financial emergency arises, your emergency fund (if you have one) is your only resource. This restriction is why it's essential to have at least a small emergency fund in place before entering debt review.
Your credit bureau record will reflect the debt review status for the duration of the review and will be cleared only once you receive your clearance certificate. After clearance, your credit score can start recovering, though the negative payment history from before the review may persist for 2–5 years depending on the bureau.
Finding a Reputable Debt Counsellor in South Africa
Debt counsellors in South Africa must be registered with the National Credit Regulator (NCR). Always verify registration at ncrdc.org.za before engaging any debt counsellor. Unregistered 'debt consultants' or companies offering to 'remove debt review immediately' are scams — there are many, and they cause significant additional harm to vulnerable consumers.
A legitimate debt counsellor will conduct a full income and expenditure assessment before taking you into review. They'll be transparent about fees, timeline, and the impact on your credit record. They'll also explain the difference between secured debt (home loan, vehicle finance — courts prioritise these) and unsecured debt (personal loans, credit cards — usually restructured more aggressively).
Some nonprofit organisations offer free debt counselling services or consumer advice before you commit to formal debt review. These include the National Debt Mediation Association (NDMA) helpline (0861 628 628) and various NGOs. If your situation is less severe, these services might help you negotiate directly with creditors without entering formal debt review.
Frequently Asked Questions
Debt review (debt counselling) is a legal process under the National Credit Act that allows over-indebted South Africans to restructure their debt into a single, reduced monthly payment they can afford. A registered debt counsellor negotiates with creditors on your behalf. While under debt review, creditors cannot take legal action against you or repossess assets covered by the review.
You qualify if you are over-indebted — meaning your total monthly debt obligations (minimum payments) exceed your net income after basic living expenses. You must have a regular income (employed or self-employed). You cannot apply for debt review if you've already been served with a summons or if your asset has already been repossessed.
Debt counsellor fees are regulated by the NCR. Typical fees include: application fee ~R50; restructuring fee of 75 cents per R1 of the first monthly instalment (max R8,000); monthly after-care fee of 5% of instalment (max R450/month); and legal fees if a court order is needed. These fees come out of your consolidated payment — you don't pay them upfront in cash.
No. While under debt review, you are flagged on the credit bureaus. No credit provider may grant you any new credit — no store cards, loans, credit cards, or home loans. This is both a protection (prevents you from accumulating more debt) and a restriction (you cannot access credit for any purpose, including emergencies).
You exit debt review in one of three ways: successfully paying off all restructured debt (most common — you receive a clearance certificate); paying off all debt in a lump sum; or applying to court to have the debt review order rescinded if you're no longer over-indebted. You cannot simply withdraw — a debt counsellor cannot unilaterally remove your debt review status once a court order has been granted.
Disclaimer: This page is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional before making financial decisions.
