What is debt review and how does it work?

Debt review is a legal process in South Africa designed to help individuals who are struggling with debt. The process involves a debt counsellor assessing the individual’s financial situation and working with their creditors to negotiate a repayment plan that is affordable for the individual.

Here’s how debt review works:

Step 1 – Free Assessment: 

When you enter debt review, your debt counsellor will assess your financial situation and determine how much you can afford to pay towards your debts each month. A debt counsellor will assess your financial situation, including your income, expenses, and debts.

How does the free debt review assessment work?

Step 2 – Application:

If the debt counsellor determines that you are over-indebted, and you decide to proceed with the process, they will apply to the National Credit Regulator (NCR) on your behalf to start the debt review process.

What happens when I make an application for debt review?

Step 3 – Creditor Protection: 

Once you are under debt review, your creditors cannot take legal action against you without permission from the court. This protection lasts for the duration of the debt review process.

How does debt review protect me from creditors?

Step 4 – Creditor Negotiation:

The debt counsellor will negotiate with your creditors to reduce your monthly payments and interest rates, and to extend the repayment period if necessary.

How do debt counsellors reduce my repayments?

Step 5 – Reduced Monthly Payments:

You will make one affordable monthly payment to a Payment Distribution Agency (PDA), which will distribute the funds to your creditors according to the negotiated repayment plan.

How do payments work when I’m under debt review?

Final Step – Completion: 

Once you have paid off all your debts under the repayment plan, the debt counsellor will issue a clearance certificate, and you will be debt-free.

What happens when I complete the process?

Debt review is a powerful tool to help individuals get out of debt, but it’s important to understand that it’s not a quick fix. The process can take several years, and it requires a commitment to sticking to the repayment plan and managing your finances responsibly.


Tired of struggling with debt? Debt review can help. Our expert counsellors will create a customised plan to help you get back on track. Contact us to speak to our expert counsellors and start your journey towards financial freedom.

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