The Debt Review Process in South Africa

Debt review, also called debt counselling, is a legal process introduced by the National Credit Act 34 of 2005 (NCA) to help consumers who cannot meet their monthly debt repayments. It allows an over-indebted person to restructure their debts into a single, more affordable payment while receiving protection from creditors.

Who qualifies

Debt review is for consumers who are over-indebted — meaning they cannot realistically meet all their credit obligations as they fall due. It is aimed at people who still have an income but whose debt repayments exceed what they can afford. It is not available to consumers who are already subject to certain legal steps by creditors.

How the process works

• You apply to a registered debt counsellor, who assesses your income, expenses and debts.
• If you are found to be over-indebted, the counsellor notifies your credit providers and the credit bureaus.
• The counsellor proposes a restructured repayment plan spread over a longer period at reduced instalments.
• The plan is made an order of the Magistrate’s Court or confirmed through the National Consumer Tribunal.

Protection while under review

Once you are under debt review, credit providers generally cannot take legal action to enforce the debts included in the review, provided you keep up with the restructured payments. Your home and vehicle are protected as long as you comply with the arrangement. You also cannot access new credit while under review.

Exiting debt review

When you have repaid all your debts (except a home loan, which may be paid over its normal term), the debt counsellor issues a clearance certificate. This is sent to the credit bureaus, which then remove the debt-review flag from your credit record, allowing you to access credit again.

Advantages and drawbacks

Debt review can prevent repossession and give real breathing room, but it extends the repayment period and restricts new borrowing while active. It differs from sequestration, which is a more drastic insolvency step. Choosing the right route depends on your income, assets and the size of your debt — an area where independent advice is valuable.

If you are struggling with repayments, acting early — before creditors obtain judgment — gives you the widest range of options and the best chance of keeping your assets.