Debt review explained, clearly and honestly.

What is debt review?

Debt review is a formal process under South Africa’s National Credit Act. An NCR-registered debt counsellor assesses whether you are over-indebted, helps prepare a realistic household budget, and negotiates a restructured repayment plan with your credit providers.

The aim is not to erase debt. It is to make repayments more manageable, usually by lowering the monthly amount and extending the repayment period, while you continue paying what you can afford.

Who may qualify?

Debt review may be worth exploring if your income is no longer enough to cover both reasonable living expenses and your monthly debt instalments.

• You have a regular, provable income that can support a revised repayment plan.
• You are struggling to meet repayments on credit agreements such as loans, credit cards, vehicle finance or store accounts.
• You are not currently under debt administration.
• If you are married in community of property, both spouses apply together.

Whether an application is suitable depends on your complete circumstances. A registered debt counsellor should assess this with you before you sign anything.

What happens during the process?

1. Assessment and budget

   You share accurate details of your income, expenses and debts. Living costs are considered before a repayment proposal is prepared.

2. Notification and negotiation

   Your debt counsellor notifies credit providers and negotiates a revised repayment arrangement based on affordability.

3. Order or consent process

   The proposed restructuring is taken through the appropriate legal process, such as a consent or court order.

4. One managed monthly repayment

   Payments may be made through an NCR-registered Payment Distribution Agency (PDA), which distributes money to participating credit providers.

5. Repay and obtain clearance

   When the qualifying debts are settled and relevant requirements are met, your debt counsellor may issue a clearance certificate.

What does debt review mean for you?

Knowing the trade-offs upfront helps you make an informed decision.

Potential benefits

• A more affordable repayment plan based on your income and essential expenses.
• A registered debt counsellor negotiates with credit providers on your behalf.
• Applying early can offer protection against certain enforcement action while you comply with the process and repayments.

Important limitations

• You generally cannot take out further credit while you are under debt review.
• Your credit profile will reflect that you are under debt counselling until a clearance certificate is issued.
• Debt review has costs. Ask for a written explanation of all applicable fees before you apply.
• You must keep to the agreed repayment plan and promptly tell your debt counsellor if your circumstances change.

Questions to ask before you apply

• What is your NCR registration number, and how can I verify it?
• Which debts are proposed for restructuring, and what will my monthly payment be?
• How long might repayment take under the proposed plan?
• What fees apply? Please provide them in writing.
• Which NCR-registered PDA will handle payment distribution?
• What happens if my income or living costs change?

Sources and verification

This guide is general information, not personal financial or legal advice. Debt-review rules and fee guidance can change, so verify current details before applying. The process information on this page is based on South African government consumer guidance and NCR communications:

• South African Government: Debt counselling explained
• SAnews: Guidance for over-indebted consumers
• National Credit Regulator (NCR) — verify registrations, fees and accredited payment distribution agencies.