Struggling With Debt in SA? Here’s Your 2025 Guide to Debt Review

Drowning in debt? You’re not alone. Here’s how debt review in South Africa works, who qualifies, what it costs, and how it can help you breathe again — updated for 2025.

You’re Not Failing — You’re Taking Back Control

Debt can feel overwhelming — like a never-ending cycle of stress and bills. But there’s a legal way out, and it’s helped millions of South Africans take back control of their finances. It’s called debt review, and if your debt is keeping you up at night, this might be the lifeline you need.

Let’s break down exactly how it works, who qualifies, what it costs, and what life looks like after debt review.

So… What Is Debt Review?

Debt review (also known as debt counselling) is a legal debt rescue plan introduced by the National Credit Act. It helps people who are over-indebted — meaning you’re earning money but still can’t afford to cover your monthly debt payments and basic living costs.

With the help of a registered debt counsellor, your debts get restructured into one simplified monthly payment — at reduced interest rates — and you get full legal protection from creditors while you pay things off at your own pace.

The Big Wins:

✅ No more creditor calls or court threats
✅ One lower monthly payment — not five or ten
✅ Reduced interest rates
✅ Court-approved, legally binding repayment plan
✅ No new debt allowed while you’re in the process (for your own good)

Who Can Apply?

If you're working and overwhelmed by your monthly debt obligations, debt review might be for you.

You’ll need:

• A steady income (salary, pension, or business income)

• To live in South Africa

• To be over-indebted (your income doesn’t cover all your debts + essentials)

Heads up:

• Married in community of property? Your spouse must apply with you.

• Blacklisted? No worries — you can still qualify.

• Self-employed? You’ll need to show consistent income for a few months.

How It Works — Step-by-Step

1. Chat to a Registered Debt Counsellor

Only work with someone officially registered with the National Credit Regulator (NCR). You can double-check them on the NCR website. Avoid dodgy operators!

2. Get Assessed

Your counsellor will check your income, debts, and expenses. If you qualify:

• They’ll file your application (Form 16)

• Let your creditors and credit bureaus know

• Pause any legal action while your application is being processed

3. Get a Custom Payment Plan

Your counsellor will:

• Negotiate lower interest rates with your creditors

• Restructure payment terms so your monthly instalment fits your budget

• Combine your debts into one monthly payment

• Ensure you’ve still got money left for groceries, rent, and transport

4. Legal Approval

Your new plan is submitted to court. Once approved, all creditors must follow it. You’re now protected — and on track to becoming debt-free.

5. Pay One Amount Each Month

Your monthly payment goes to a Payment Distribution Agency (PDA). They split it between your creditors, as per the plan.

How long does this take?

• Setup: 1–3 months

• Repayment period: Usually 2–5 years

• Total journey: Most people finish within 24–60 months

The Benefits

Full Legal Protection

No more:

• Garnishee orders

• Repossession threats

• Calls from angry creditors

• Court judgments related to debt

Lower Monthly Payments

Your monthly debt bill could drop by 30–50% thanks to:

• Reduced interest rates (from 20% down to 5–10%)

• Longer repayment terms

• Waived creditor fees

Better Cash Flow = Less Stress

More room in your budget = more peace of mind.
You’ll sleep better, breathe easier, and have cash for basics again.

Avoid Bankruptcy

Debt review is often a much better alternative to sequestration. No permanent blacklisting. No asset loss (as long as you stick to the plan).

Professional Support

You’re not doing this alone. Your debt counsellor will:

• Negotiate with creditors

• Help you stick to your budget

• Track your progress

• Offer support whenever you need it

Things to Keep in Mind

You Can’t Take on New Credit

While under review, you can’t open new accounts or take loans. This is part of your protection, not a punishment.

There Are Fees

Debt review isn’t free, but the fees are regulated and built into your repayment plan:

• One-time application & restructuring fees

• Monthly service fees

• Legal fees for the court order

A good counsellor will explain all of this upfront — no nasty surprises.

Your Credit Record Will Show It

While under review:

• A flag appears on your credit report

• You may struggle to get rentals or credit-based services

BUT: This gets removed after you complete the plan and get your clearance certificate 🎉

Avoiding Pitfalls

Sadly, over 1.3 million South Africans are stuck in debt review limbo — flagged but not actively repaying. Here’s how to avoid that:

✅ Choose a legit, responsive counsellor
✅ Stick to your repayment plan
✅ Talk to your counsellor if your income changes
✅ Don’t miss payments — they’re your lifeline
✅ Use bonuses or windfalls to pay extra when you can

After Debt Review: What Comes Next?

You Get a Clearance Certificate

Once you’ve paid off everything in your plan, your counsellor gives you a Form 19 Clearance Certificate. This:

• Clears the debt review flag

• Wipes negative listings from your credit record

• Tells credit bureaus you’ve completed the process

Rebuild Your Credit (Slowly & Smartly)

• Wait 2–3 months before applying for new credit

• Start with a small account

• Pay on time — in full

• Monitor your score regularly

• Keep spending under control

Stay Debt-Free

Now that you’re free:

• Keep budgeting like a pro

• Build an emergency fund

• Only use credit if you need it

• Invest in your financial wellness

FAQs

Can I exit early?
Only if you settle all your debt or get a court order — not easy, not cheap.

Can I apply if I’ve lost my job?
No income = no debt review. But if you lose your job during the process, your counsellor can pause or adjust your plan temporarily.

Can I buy a car or home during debt review?
Nope. But once you’re done and cleared, yes!

Does it cover all my debts?
Mostly unsecured debts (credit cards, loans). Your mortgage and car finance might stay separate but are factored into your budget.

Is Debt Review Right for You?

Yes, if:

• You’ve got a steady income

• You’re behind on payments

• You’re over-indebted

• You want a structured, legal path to recovery

Maybe not, if:

• You have no income

• Your debts are small and manageable

• You’ve already failed debt review once before

Let’s Wrap This Up

Debt review isn’t a failure — it’s a smart move. It means you’re facing your finances head-on and choosing recovery over avoidance.

Thousands of South Africans have already walked this path — and come out stronger on the other side. You can too.

Take the first step today. Find a registered debt counsellor on the National Credit Regulator’s website and start building a future that’s debt-free — and stress-free.