What Is Debt Review in South Africa?

What debt review is

Debt review (also called debt counselling) is a formal debt-relief process created by the National Credit Act (Section 86). It is designed for consumers who are over-indebted — meaning, put simply, that they cannot meet all their monthly debt payments and still cover their living costs.

A registered debt counsellor reviews your income, expenses and debts, works out what you can realistically afford, and negotiates a single, reduced monthly payment with your creditors, often over a longer period and at lower interest.

How debt review works

The process runs roughly like this: you apply through a registered debt counsellor; they assess whether you are over-indebted; if you are, they propose a restructured repayment plan; and that plan is made an order of court. You then make one affordable payment each month, which is distributed to your creditors on your behalf.

The protection debt review gives you

This is the real value of debt review. Once you are under review and paying, your creditors generally may not take legal action against you or repossess assets such as your home or car — as long as you keep up the agreed payments. It turns a chaotic, stressful situation into one manageable plan, with legal protection while you work through it.

The debt review flag on your record

While you are under debt review, a flag is placed on your credit profile, and under Section 88 of the National Credit Act you may not take on new credit during this time. This is not the same as a default or “blacklisting” — it signals that you are actively repaying under a structured plan. The flag is removed once you complete the process.

How you exit debt review

There are lawful ways out. Once you have settled the debts under your plan (a home loan may be excluded if it is up to date), your debt counsellor issues a clearance certificate (Form 19) under Section 71, submits it to the bureaus and the National Credit Regulator’s Debt Help System, and the flag is removed. If your circumstances have improved and you are no longer over-indebted, a court application is the other route.

Be very cautious of anyone promising “instant” debt review removal — illegal shortcuts can leave you worse off. If you have finished debt review but the flag is still there, we can help with lawful debt review removal.

Frequently asked questions

This article is general information about South African credit and is not legal or financial advice. CleanCredit, a division of The Debt Company, assists with qualifying credit-record matters in line with the National Credit Act. We do not provide loans or debt consolidation and cannot remove accurate, valid or current debt. A free assessment carries no obligation.