If you are struggling to keep up with monthly debt repayments, you are not alone. Thousands of South Africans face financial pressure due to rising living costs, high interest rates, and unexpected expenses. Fortunately, debt counselling and debt relief solutions such as debt review offer legal protection and a structured way to regain control of your finances.

In this article, we explain how the debt review process in South Africa works, how it helps with debt restructure, and why professional debt counselling may be the right solution for you.

What Is Debt Review?

Debt review, also known as debt counselling, is a legal debt relief solution in South Africa regulated by the National Credit Act (NCA) and overseen by the National Credit Regulator (NCR) — https://www.ncr.org.za. It is designed to assist consumers who are over-indebted and can no longer afford their monthly debt obligations. Below are some benefits of the Debt Review Process.

When you enter debt review:

Your debt repayments are restructured to affordable amounts
You receive legal protection from creditors
Interest rates is usually reduced significantly
You avoid legal action such as garnishee orders or repossession

Debt review is not a loan. It is a formal debt restructure process (Debt Review Process) managed by a registered debt counsellor.

Who Qualifies for Debt Review?

You may qualify for debt review if:

You are employed or earn a stable income and are struggling to pay your monthly instalments
You have multiple credit accounts such as credit cards, personal loans, vehicle finance, or store cards and some of them are in arrears
You have not yet been sequestrated or under administration as both are also legal debt solution which cannot be adopted simulteneously

A registered debt counsellor will assess your financial situation to determine whether debt counselling is the most suitable debt relief solution for you.

Step-by-Step Debt Review Process in South Africa

1. Financial Assessment

The debt counselling process begins with a full financial assessment. Your debt counsellor will review:

Your income
Monthly expenses
Outstanding debts and interest rates

This assessment determines whether you are over-indebted as defined by the NCA.
Over-indebtedness is a situation where your income can't cover all your monthly payments and living expenses. click the link on our Debt restructure page to see detailed information on how we do the free assessement Debt Restructure, Debt Review, Debt Counselling, Debt Relief.

2. Application for Debt Review

If the Debt Counsellor determines that you are over-indebted, they provide further detailed information regarding the process to help you make an informed decision.

If you wish to proceed, you will be required to provide further information and documents (payslip, ID copy and Bank statement) which will be captured and a prefilled application form (Form 16) is generated together with a Power of Attorney for signature.
The signed documents will give the Debt Counsellor the right to contact your creditors and credit bureaus on your behalf.

Once confirmed, you formally apply for debt review. Your debt counsellor will begin the Debt Review process as follows:

Notifies all credit providers
Registers your application with the National Credit Regulator (NCR)
Places you under legal debt review protection

From this point, creditors may not take legal action against you while the process is underway.

3. Debt Restructure Proposal

Once the Debt Counsellor receives all certificate of balances (COBs) that provides a summary of the terms of the credit agreement including outstanding balances and interest rates etc.
A proposal that complies with the Task Team Agreement guidlines (https://pmg.org.za/files/180815Task_Team_Agreements.pdf) will be issued by the Debt Counsellor to all your Creditors. Your debt counsellor negotiates with your creditors to:

Reduce interest rates
Extend repayment terms
Combine your repayments into one affordable monthly payment

This debt restructure ensures that you can meet your obligations while covering essential living expenses.

4. Court or Tribunal Approval

After receiving acceptance letters to the terms of the proposal, the restructured repayment plan is submitted to:

A Magistrate’s Court or
The National Consumer Tribunal

Once approved, the plan becomes legally binding on all parties.

5. One Monthly Payment, Legal Protection & Peace of Mind

You make a single monthly payment to a Payment Distribution Agency (PDA), which distributes funds to your creditors according to the approved plan. This simplifies debt management and ensures transparency with a monthly statement provided detailing the amounts debited and the distributions made to your credit providers.

6. Become Debt Free, Clearance from Debt Review

Once your unsecured debts are paid, you’ll receive a Clearance Certificate (Form 19). If your finances improve early while your debts are not fully paid-up, ask about our Debt Review Removal service to exit sooner. Click the link for more conditions under which you are allowed to Exit Debt Review Legally, Debt Review removal – Clear Your Name from Debt Review.

Benefits of Choosing Our Debt Restructure Programme

📉 Reduce monthly instalments by up to 50% on average.
🛡️ Stop creditor harassment and legal threats.
🏡 Protect your car and home from repossession.
📄 Legally compliant under the National Credit Act.
🧾 One affordable payment instead of multiple stressful debts.