If you're struggling to keep up with your monthly debt repayments, debt review could be the legal solution that helps you regain control of your finances. Introduced by South Africa's National Credit Act (NCA) in 2007, debt review has helped hundreds of thousands of South Africans reduce their monthly payments and protect their assets from repossession.
What Is Debt Review?
Debt review — also called debt counselling — is a formal, legal process governed by the National Credit Act (Act 34 of 2005). It is designed to help over-indebted consumers by restructuring their debt repayments into a single, more affordable monthly payment.
A registered debt counsellor assesses your financial situation using credit bureau information, negotiates with your creditors to reduce interest rates and extend repayment terms, and creates a restructured repayment plan. You begin making reduced payments immediately — you do not wait for a court order. The plan is then submitted to court for a consent order, which makes it legally binding on both you and your creditors.
Debt review is not the same as debt consolidation, personal administration, or sequestration. It is a regulated process that offers legal protection while you repay your debts in full.
How Does Debt Review Work?
The debt review process follows a structured series of steps, all regulated by the NCR (National Credit Regulator):
You apply through a registered debt counsellor who assesses your income, expenses, and total debt obligations using credit bureau information. Once you sign the Form 16 (your formal application), you are legally under debt review.
Within 24 hours of receiving your signed Form 16, your debt counsellor sends 17.1 notices to all your creditors. This informs them you are under debt review, triggers your legal protection, and requests Certificates of Balance (COBs) — the verified amounts on each account.
Once COBs are returned, your counsellor uses that exact data to build a restructured repayment plan with reduced interest rates and extended terms. This proposal is sent to creditors on a Form 17.2. Creditors can accept or negotiate further.
You begin making a single reduced monthly payment right away — you do not wait for a court order. Payments go to a registered Payment Distribution Agency (PDA), which distributes the funds to your creditors.
Your debt counsellor submits a court pack to the magistrate's court for a consent order, which makes the plan legally binding. Court timelines vary between courts, but your payments and creditor protection are already in place.
Once all debts are paid in full, you receive a clearance certificate (Form 19). The debt review flag is removed from your credit profile and you are free to apply for credit again.
Who Qualifies for Debt Review?
To qualify for debt review in South Africa, you must meet the following criteria:
- You must be a South African citizen or permanent resident
- You must have a regular source of income (employed, self-employed, or receiving a pension/grant)
- You must be over-indebted — meaning your income is not enough to cover your living expenses and debt repayments
- You must have credit agreements that fall under the National Credit Act
- You must not currently be under administration or sequestration
What Are the Benefits of Debt Review?
Your total monthly debt repayment is reduced by up to 50%, making it affordable.
Interest rates are negotiated down, sometimes to as low as 0% on certain accounts.
Creditors cannot repossess your car, house, or other assets while you are under debt review.
Creditors are legally required to stop contacting you for payments once debt review begins.
Instead of juggling multiple creditors, you make one payment each month.
You pay off all your debts in full and receive a clearance certificate at the end.
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Start Free WhatsApp AssessmentWhat Debts Can Be Included?
Debt review covers most credit agreements regulated by the National Credit Act, including:
- Personal loans and bank loans
- Credit card debt
- Store accounts and retail credit
- Vehicle finance (car payments)
- Home loans (mortgages)
- Overdraft facilities
- Cellphone contracts with handset financing
Debts not covered by debt review include SARS tax debt, court fines, maintenance obligations, and student loans from NSFAS.
How Long Does Debt Review Take?
The duration of debt review depends on how much debt you owe and how much you can afford to repay each month. Most clients complete the process within 3 to 5 years. Some may finish sooner if they receive bonuses, salary increases, or choose to make additional payments.
Throughout this period, your assets remain protected and your interest rates stay reduced. Once all debts are settled, you receive your clearance certificate and are officially debt-free.
Debt Review vs Other Options
Many people confuse debt review with other debt relief options. Here's how it compares:
| Feature | Debt Review | Debt Consolidation | Sequestration |
|---|---|---|---|
| Legal protection | Yes | No | Yes |
| Reduces interest | Yes | Sometimes | N/A |
| Keeps assets | Yes | Yes | No |
| New credit | No (during) | Yes | No |
| Court process | Yes | No | Yes |
| Pay debts in full | Yes | Yes | No |
Why Choose DS4U for Debt Review?
DS4U is an NCR-registered debt counsellor (NCRDC2423) with a proven track record of helping South Africans become debt-free. We have been recognised in the Debt Review Awards in 2023, 2024, and 2025, and maintain a 5-star rating across HelloPeter and Google Reviews.
Our WhatsApp-first process means you can complete your entire assessment without paperwork or office visits. We handle everything — from the initial assessment to creditor negotiations and court applications.
Frequently Asked Questions
Is debt review the same as blacklisting?
No. Debt review is a legal debt relief process, not blacklisting. While a debt review flag is placed on your credit profile during the process, this is to protect you — not penalise you. The flag is removed once you receive your clearance certificate.
Can I be forced into debt review?
No. Debt review is completely voluntary. You must apply through a registered debt counsellor. However, a court or creditor can suggest it as an alternative to legal action.
What debts are included in debt review?
Debt review covers most credit agreements including personal loans, credit cards, store accounts, vehicle finance, and home loans. It does not cover tax debt, maintenance obligations, or student loans from government institutions.
