Debt review is the most searched financial topic in South Africa — and the most misunderstood. This guide answers every question in one place. Whether you are considering debt review, already under it, or just trying to understand your options, this is the definitive resource from Debt Solutions 4U, an NCR-registered debt counsellor (NCRDC2423) rated 4.9 stars with 477+ Google reviews.
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What Is Debt Review?
Debt review (also called debt counselling) is a formal legal process under Section 86 of the National Credit Act (NCA). It is the only debt relief option in South Africa that provides legal protection for your assets while restructuring your debt payments to an affordable level. An NCR-registered debt counsellor negotiates with all your creditors to reduce interest rates from 14–27% down to 0–5%, and the restructured plan becomes a court order.
How Debt Review Works
| Step | What Happens | Timeline |
|---|---|---|
| 1. Free assessment | You contact DS4U via WhatsApp. We assess your income, expenses, and debts. | 60 seconds |
| 2. Full financial review | Your debt counsellor reviews all documents and calculates affordability. | 1-3 days |
| 3. Creditors notified (Form 17.1) | All creditors and credit bureaus are formally notified. Harassment stops. | Within 5 business days |
| 4. Interest rate negotiations | Your counsellor negotiates reduced rates with each creditor individually. | 2-4 weeks |
| 5. Court order / consent | The restructured plan becomes legally binding. | 30-60 days |
| 6. One monthly payment begins | You pay one amount to a PDA which distributes to all creditors. | Immediately after order |
| 7. Debts paid off | All debts are settled at the reduced rates over 3-5 years. | 3-5 years |
| 8. Clearance certificate | Your counsellor issues Form 19. Debt review flag is removed. You are debt-free. | 7-21 days after last payment |
What Debt Review Protects
Section 86 prevents repossession while you make reduced payments. Read about car protection under debt review.
Your bond is included at a reduced interest rate. Sale in execution is halted. Read about home loan protection.
Garnishee orders are replaced by the debt review court order. No more salary deductions.
Creditor calls stop. Legal threats end. One payment replaces many. You have an end date.
What Debt Review Costs
All fees are regulated by the NCA and included in your monthly payment — no upfront cost:
- Application fee: R50 (once)
- Restructuring fee: Maximum R8,000 (spread over first payments)
- Aftercare fee: 5% of monthly payment, capped at R450/month
- PDA fee: R29.50/month
Full breakdown: What does debt review cost?
Who Qualifies?
There is no minimum debt amount. You qualify if your debt repayments exceed what you can afford after covering essential living expenses and you have a regular income source. Read the full 8 signs it is time for debt review.
Debt Review vs Other Options
| Option | Interest Rate | Asset Protection | Legal Standing |
|---|---|---|---|
| Debt review | 0-5% (negotiated) | Yes — Section 86 | Court order — binding |
| Consolidation loan | 15-27% | None | Voluntary — creditors can change terms |
| Self-negotiation | Varies | None | No legal standing |
| Administration order | Limited | Limited | Court order — for debts under R50K |
| Sequestration | N/A — assets sold | None — you lose assets | Court order — bankruptcy |
Detailed comparisons: Debt review vs consolidation | Debt review vs sequestration | Consolidation loans explained
Life During and After Debt Review
During: You make one monthly payment. Creditors cannot contact you. Your assets are protected. You cannot take on new credit. You learn to live within your means — cash and debit only.
After: Your clearance certificate is issued. The debt review flag is removed. All debts show as "paid up." Your credit score recovers within 6-12 months. You can apply for credit again — including a home loan. Full guide: Life after debt review.
Why Choose Debt Solutions 4U?
Debt Solutions 4U is one of the top-rated debt review companies in South Africa. NCR-registered (NCRDC2423), DCASA member, 4.9 Google stars with 477+ reviews. Our entire process runs on WhatsApp — assessment, proposal, and Form 16 signing. No emails. No paperwork. No delays. Meet our team.
Reviewed by a registered debt counsellor, NCRDC2423
Frequently Asked Questions
What is the first step to starting debt review?
Contact an NCR-registered debt counsellor for a free assessment. At Debt Solutions 4U, this takes 60 seconds via WhatsApp. You share your income and approximate total debt, and a consultant tells you immediately whether you qualify and what your estimated reduced payment would be. No documents needed for this initial check.
Can all types of debt be included in debt review?
Debt review covers NCA-regulated credit agreements: home loans, vehicle finance, personal loans, credit cards, store accounts, overdrafts, and cellphone contracts. It does not cover SARS tax debt, municipal rates and taxes, maintenance orders, student loans from NSFAS, or debts where a court judgement has already been obtained.
What is the difference between debt review and debt consolidation?
Debt consolidation is a new loan used to pay off existing debts — you still owe the same amount at a new interest rate (15-27%). Debt review is not a loan. Your debt counsellor negotiates reduced interest rates (0-5%) with your existing creditors. No new debt is created. The plan becomes a court order with legal protection for your assets.
Will I lose my house or car under debt review?
No. Section 86 of the NCA prevents creditors from repossessing your assets while you are under debt review and making your reduced payments. This is one of the key benefits — debt review is specifically designed to protect your assets while you pay off your debts at an affordable rate.
How much does debt review reduce my payments?
Most clients see a 30-50% reduction in total monthly debt payments. The savings come primarily from interest rate reductions — from 14-27% down to 0-5%. A client paying R20,000/month typically pays R10,000-R14,000 under debt review. Use our debt review calculator for a personalised estimate.
