Debt Review Made Simple: What South Africans Need to Know

Many South Africans facing over-indebtedness feel uncertain about debt review—what it involves, how it works, and whether it’s the right option.

Benay Sager, chairperson of the National Debt Counsellors’ Association (NDCA), stresses that the process is designed to be clear and manageable for consumers.

Here’s a step-by-step guide:

Step 1: Application

Your journey starts by contacting a registered debt counsellor—either through the NDCA website or the National Credit Regulator’s database.

• The counsellor will first do a free telephonic debt assessment to check:

  • How much you owe in total

  • What portion of your income goes to debt

  • Whether debt counselling is the right solution for you

If it’s suitable, you can then formally apply.

Step 2: Protection

Once you’ve applied, your counsellor informs all your creditors and the credit bureaus that you’re under debt review.

📌 This gives you breathing room—creditors stop calling you directly and communicate only through your counsellor.

Step 3: Negotiation

Your counsellor negotiates with your creditors to lower your monthly repayments on debts covered by the National Credit Act (this excludes municipal rates and school fees).

• The repayment plan is based on what you can realistically afford.

• Because there may be several creditors, this negotiation can get complex—but your counsellor handles it for you.

Once everyone agrees, the plan is made official by either a court or the National Consumer Tribunal. Creditors can’t later change or increase the payments.

Step 4: Payment

You’ll make one affordable monthly payment through DebiCheck. This goes to an independent Payment Distribution Agency (PDA), which then pays your creditors.

• Your counsellor assigns the PDA.

• Debt review usually lasts 3–5 years, depending on:

  • How much you owe

  • The terms negotiated

  • How much you can pay

💡 If your finances improve, you can pay more or settle faster with a lump sum.

Step 5: Clearance

When you’ve completed the process, you’ll receive a clearance certificate confirming your debts are settled.

• For home loans, your bond doesn’t need to be fully repaid—but your account must be up to date.

• Your counsellor also ensures credit bureaus update your profile.

✅ By understanding each step, you can decide with confidence whether debt review is the right path to financial stability.