This is the most comprehensive debt review guide in South Africa. Whether you are considering debt review, already under it, or helping a family member understand their options — this page covers everything. Written by Debt Solutions 4U, an NCR-registered debt counsellor (NCRDC2423) with 477+ Google reviews at 4.9 stars.
Quick Navigation
- New to debt review? Start with our 5-minute beginner's guide
- Want to apply? Read how to apply step by step
- Comparing options? See every debt solution compared
- Just want to check? Use our debt review calculator
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 provides a structured way for over-indebted South Africans to repay their debts at reduced interest rates while protecting their assets from repossession. A registered debt counsellor negotiates directly with your creditors — banks, vehicle finance companies, credit card providers, and retailers — to create a single, affordable monthly payment plan. Read the detailed explanation of debt review.
How Debt Review Works — The Process
| Stage | What Happens | Timeline |
|---|---|---|
| 1. Free assessment | Counsellor reviews your income, expenses, and debts | 60 seconds (WhatsApp) |
| 2. Full financial review | Detailed affordability calculation and document collection | 1-3 days |
| 3. Form 17.1 issued | Creditors notified — all contact and legal action stops | Within 5 business days |
| 4. Creditor negotiations | Interest rates negotiated down to 0-5% | 2-4 weeks |
| 5. Court order filed | Restructured plan becomes legally binding | 30-60 days |
| 6. Monthly payments begin | One consolidated payment via PDA | Ongoing (3-5 years) |
| 7. Clearance certificate | All debts paid — flag removed from credit record | On completion |
For the full process breakdown, read our step-by-step debt review process guide.
Who Qualifies?
There is no minimum debt amount. You qualify if your debt repayments exceed what you can reasonably afford after essential expenses, you have a regular income (employed, self-employed, or pension), and you have NCA-regulated credit agreements. If you are showing signs of over-indebtedness, you likely qualify.
What It Costs
All fees are regulated by the NCA and included in your monthly payment — no upfront cost. The total fees (restructuring + aftercare) are typically offset by interest savings within the first 2-3 months. On a R500,000 debt portfolio, the interest reduction from 20% to 4% saves R6,500/month — far exceeding the R450/month maximum aftercare fee.
Pros and Cons — The Honest Truth
- Monthly payments reduced 30-50%
- Interest rates drop to 0-5%
- Car and house legally protected
- Creditor calls and legal action stop
- One payment replaces many
- Clear end date — typically 3-5 years
- Credit record cleared on completion
- Cannot take new credit during review
- Credit cards and store accounts frozen
- Debt review flag on credit record (temporary)
- May take longer to pay off than original terms
- Requires consistent monthly payments
- Exiting early removes all protections
Read the full pros and cons analysis and when debt review is the right choice.
Your Car, Your House, Your Job
The three biggest fears — addressed directly:
- Your car: Protected under Section 86. Cannot be repossessed while you make payments. Read can I lose my car?
- Your house: Same protection. The bank cannot proceed with sale in execution. Read can I lose my house?
- Your job: Your employer is NOT notified. Debt review is confidential. Read can my employer know?
Debt Review for Specific Situations
How marital regimes affect debt review
Self-employedFreelancers and business owners
Government employeesTeachers, nurses, police, and civil servants
High earnersProfessionals earning R50K-R150K+
Does it affect your spouse?In community vs ANC explained
After retrenchmentLost your job and in debt
After Debt Review — What Happens Next
Once you receive your clearance certificate, the debt review flag is removed from your credit record. All debts show as "paid up." Most clients see their credit score improve significantly within 6-12 months. Many successfully qualify for home loans and vehicle finance within 12 months. Read life after debt review for the full picture.
Choosing a Debt Review Company
Not all debt review companies are equal. Verify NCR registration, check reviews, confirm fee transparency, and ensure they use a registered PDA. Read our guide to the best debt review companies and how to find a counsellor near you.
Real Success Stories
See how real South Africans reduced their payments by 30-50% and became debt-free. Read our debt review success stories — a teacher who saved R8,600/month, a single mother who escaped payday loans, and a couple who saved their home from sale in execution.
Reviewed by a registered debt counsellor, NCRDC2423
Frequently Asked Questions
What is debt review?
Debt review (debt counselling) is a legal process under Section 86 of the National Credit Act where an NCR-registered debt counsellor negotiates with your creditors to reduce interest rates and monthly payments. All debts are consolidated into one affordable payment, and your assets (car, house) are legally protected from repossession. The restructured plan becomes a court order that creditors must accept.
How much does debt review cost?
Fees are regulated by the NCA: R50 application fee, maximum R8,000 restructuring fee (spread over payments), 5% aftercare fee capped at R450/month, and R29.50/month PDA fee. All fees are included in your single monthly payment — there is no additional out-of-pocket cost. The interest savings typically exceed total fees within the first few months.
Who qualifies for debt review?
Any South African consumer who is over-indebted — meaning your debt repayments exceed what you can reasonably afford after essential living expenses — and has a regular income. There is no minimum or maximum debt amount. You must have NCA-regulated credit agreements (home loans, vehicle finance, personal loans, credit cards, store accounts). No judgements on debts to be included.
How long does debt review take?
Most debt review plans run for 3 to 5 years depending on total debt and affordable monthly payment. The initial process (assessment to court order) takes 30-60 days. Creditor contact stops within the first week when the Form 17.1 is issued. Once all debts are paid, your counsellor issues a clearance certificate within 5 business days.
Can I lose my car or house under debt review?
No — this is one of the primary benefits of debt review. Section 86 of the NCA prevents creditors from repossessing your assets while you are under debt review and making your restructured payments. Your car and house are legally protected. This protection continues for the entire duration of the debt review process.
