What Is Debt Review? A Plain-English Guide
Debt review — also called debt counselling — is a legal process in South Africa that helps over-indebted consumers get back in control. A registered debt counsellor reworks what you owe into a single, lower monthly payment you can actually afford, negotiates reduced interest and fees with your creditors, and protects your home and car from repossession while you repay. It was created by the National Credit Act for one purpose: to give honest people who have taken on too much debt a structured, legal way out — without losing everything.
What debt review does for you
Debt review is not a loan and it does not write off your debt. Instead it changes the terms of the debt you already have so your monthly obligations fit your real budget:
- One affordable payment. All your debts are combined into a single monthly instalment, worked out around what you have left after living costs.
- Lower interest and fees. Your counsellor negotiates reduced rates with your creditors, so more of your payment clears the actual debt.
- Legal protection for your assets. While you keep up the agreed payments, creditors cannot repossess your home or car, or take legal action, over the debts included in your plan.
- No more collection calls. Once you are under review, creditors and their collectors deal with your counsellor, not you.
- A clear finish line. When your plan is complete you receive a clearance certificate and are removed from debt review.
Who debt review is for
Debt review is designed for consumers who are over-indebted but still earning — people who can afford a restructured, realistic payment but cannot keep up with their current instalments. It usually fits you if:
- You are falling behind, or using credit to pay for credit and everyday costs.
- Your debt repayments take up more of your income than you can sustain.
- You want to protect your home and car rather than lose them.
- You have a regular income to support a payment plan.
It is not the right fit if you have no income to contribute, or if your debt is small enough to clear with a simple budget — and a good counsellor will tell you so. Not sure where you stand? Our Debt Pressure Check and Debt-to-Income Calculator give you a read in minutes.
How debt review works, step by step
The whole process is handled by your debt counsellor:
- Assessment. You apply and your counsellor checks whether you are legally over-indebted.
- Proposal. If you are, they draw up a restructured payment plan and put it to your creditors.
- Court or tribunal order. The plan is made an order of court or the National Consumer Tribunal, which makes it binding and protects you.
- One payment. You pay a single monthly amount, which is distributed to your creditors on your behalf.
- Clearance. When the debts in your plan are settled, you receive your clearance certificate and your credit record is updated.
Want the detail? See how debt review works, step by step.
What debt review costs
You do not pay a large fee upfront. Debt counselling fees are regulated by the National Credit Regulator and built into your monthly plan, so the cost is spread out and capped. That is one of the biggest protections debt review gives you against “debt help” scams that demand big upfront payments. See how much debt review costs.
Debt review: the honest trade-offs
Debt review works, but it is not free of trade-offs, and a good counsellor will be straight with you about them:
- You cannot take new credit while you are under review — that is part of how it protects you and helps you recover.
- It takes time. Most plans run a few years, depending on how much you owe.
- It is noted on your credit record while active — but that is lifted and updated once you receive your clearance certificate.
For the full, balanced view, read is debt review a good idea?
How to start — free and no obligation
The first step is a free assessment with an NCR-registered counsellor, who will tell you honestly whether debt review is right for you — even if the answer is no.
Get my free debt review assessment »
Or call us on 0861 487 487.
Learn more about debt review
- How debt review works, step by step
- Is debt review a good idea? Honest pros and cons
- What is a debt counsellor, and how to choose one
- NCR debt review: how to verify your counsellor
- How to remove or exit debt review
- Try the free debt review calculator
- Debt review questions, answered
Debt Free With Armani is a registered debt counselling practice (NCRDC1015). This page is general information about debt review in South Africa, not legal or financial advice — your situation is assessed individually.