"Do I have enough debt to qualify for debt review?" This is one of the most common questions we receive — and the answer surprises most people. There is no minimum debt amount. The National Credit Act does not say "you need R100,000 or more." What it says is that you must be over-indebted — meaning you cannot reasonably afford to pay your debts and cover your essential living expenses from your current income.
The Real Test: Debt-to-Income Ratio
Forget the total rand amount. What matters is the relationship between what you owe each month and what you earn. Here is how to calculate it:
Formula: Total monthly debt payments ÷ Net monthly income × 100 = Debt-to-income ratio
Example: R12,000 in monthly debt payments ÷ R25,000 net income × 100 = 48%
If your ratio is above 40%, you are statistically likely to default within 12 months and almost certainly qualify for debt review.
Real Examples: Who Qualifies and Who Does Not
| Person | Income (Net) | Total Debt | Monthly Payments | Ratio | Qualifies? |
|---|---|---|---|---|---|
| Thandi — admin clerk | R12,000 | R45,000 | R5,800 | 48% | Yes |
| Sipho — teacher | R22,000 | R380,000 | R14,200 | 65% | Yes |
| Johan — engineer | R55,000 | R1,800,000 | R38,000 | 69% | Yes |
| Nomsa — nurse | R18,000 | R35,000 | R3,200 | 18% | Probably not |
| Craig — IT manager | R45,000 | R250,000 | R12,000 | 27% | Borderline — could manage with budgeting |
Notice: Thandi owes R45,000 and qualifies. Johan owes R1,800,000 and qualifies. The total amount is irrelevant — it is the ratio that matters. If you are showing signs of over-indebtedness, the amount does not need to be large.
Other Qualification Requirements
Beyond being over-indebted, you need:
- Regular income: Employed, self-employed, pension, or any consistent income source. You need money coming in to fund the restructured payments.
- At least one credit agreement: Debt review covers NCA-regulated credit — home loans, vehicle finance, personal loans, credit cards, store accounts, overdrafts. It does not cover tax debt, municipal rates, or maintenance orders.
- No judgements on debts you want to include: If a creditor has already obtained a court judgement, that debt may be excluded from the debt review process. This is why acting early — before legal action — is critical.
The 60-Second Test
Choose a reputable debt review company and the fastest way to know if you qualify is a free assessment. It 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. No obligation. Try our debt review calculator for a quick estimate, or read about when to consider debt review for more context. The full application process is explained step by step in our guide.
Reviewed by a registered debt counsellor, NCRDC2423
Frequently Asked Questions
Is there a minimum debt amount for debt review?
No. The NCA does not set a minimum rand amount. You qualify based on whether you are over-indebted — meaning your existing financial obligations exceed your ability to pay them while covering essential living expenses. Someone with R50,000 in debt on a R10,000 salary may qualify, while someone with R500,000 in debt on a R80,000 salary may not.
Is there a maximum debt amount for debt review?
No maximum. Debt review handles all sizes — from R30,000 in store accounts to R5,000,000+ including a home loan, multiple vehicles, and extensive consumer debt. The process is the same regardless of the total amount. Higher-value cases often see the largest absolute savings because the interest rate reductions are applied to bigger balances.
Can I qualify for debt review with only one creditor?
Technically yes, but it is unusual. Debt review is most effective when you have multiple creditors (3+) because the consolidation benefit — one payment replacing many — is part of the value. If you owe only one creditor, direct negotiation with that creditor may be more appropriate than formal debt review.
Do I need to be behind on payments to qualify?
No. You do not need to have missed payments to qualify. If you are struggling to meet your monthly obligations — even if you are technically current but only because you are using one credit facility to pay another, or skipping essentials like food and medical care — you are over-indebted and can apply for debt review proactively.
What if I am self-employed or have irregular income?
Self-employed individuals and those with irregular income can qualify for debt review. Your debt counsellor will assess your average income over the past 3–6 months to determine affordability. The restructured payment is based on a conservative estimate of your income. Read our guide on debt review for self-employed individuals for more detail.
