Debt Review: What It Is, How It Works and Who It Is For

Debt review gets advertised as a quick way out of debt, and it is often misunderstood. For some people it is the right lifeline. For others, a cheaper and less restrictive option works better. Knowing how it really works helps you choose calmly.

What is happening

Debt review (also called debt counselling) is a formal process under the National Credit Act for people who are over-indebted. You apply to a debt counsellor registered with the National Credit Regulator (NCR). The counsellor assesses your income, expenses and debts, and if you are over-indebted, notifies your creditors and the credit bureaus.

The counsellor then proposes a restructured repayment plan, usually with lower instalments over a longer period and sometimes reduced interest. If creditors accept, or if a court or tribunal makes it an order, you pay one monthly amount to a registered payment distribution agent, which pays your creditors.

While you are under debt review, creditors generally cannot take legal action on the debts included. But there are trade-offs. You cannot take new credit until you finish, a debt review flag shows on your credit record, and the process can take years. Debt counsellors charge fees set within NCR guidelines, which are usually built into your plan. When you have paid all the included debts (a home loan can sometimes still be running), you receive a clearance certificate and the flag is removed.

Signs to notice

• You are over-indebted, not just a little behind for one month.
• You have several creditors, not only one.
• Creditors are threatening legal action or you have received letters of demand.
• You have a stable income that could cover a reduced plan.
• You can live without new credit for several years.

30-second self-check

Answer yes or no.

• Is your total monthly debt repayment more than you can afford after essentials?
• Do you owe more than two or three creditors?
• Have you tried negotiating with creditors directly without success?
• Do you have a regular income, even if it is lower than before?
• Are you ready to stop using credit until your debts are paid?
• Have creditors sent letters of demand or threatened legal action?

0-1 yes: Debt review may be more than you need. Try budgeting and negotiating directly with creditors first.
2-3 yes: Debt review might suit you, but compare it with other options before you sign. A free first conversation with an NCR-registered counsellor can help.
4 or more yes: Debt review could be a strong fit. Speak to an NCR-registered debt counsellor soon, and ask them to explain every fee and the expected timeline in writing.

What you can do next

• Today: Check any debt counsellor's registration number on the NCR website before you share documents or sign anything.
• This week: Gather three months of payslips, bank statements, and a list of all debts with account numbers. Ask for a written estimate of your new monthly payment and all fees.
• This month: Compare debt review with other options, such as negotiating with creditors or a sustainable repayment plan. If you apply, keep paying what you can until the plan is in place.
• Never pay a large upfront fee to anyone who promises to 'wipe out' debt or 'remove' a debt review flag instantly.

Your tool

Debt Review Suitability Check - answer questions about your debts, income and goals to see whether debt review, another option, or simple budgeting is likely to suit you, with questions to ask a counsellor.

When to get professional help

Speak to a registered debt counsellor if you are over-indebted and falling behind, before a creditor sues. If you already have a summons or a judgment, get legal advice. The weight of debt often shows up as shame, anxiety and poor sleep, and counselling alongside debt review can make the years ahead easier.
Who can help: NCR-registered debt counsellor, consumer attorney, Legal Aid SA, money coach, counsellor

Getting help in South Africa

The National Credit Regulator (ncr.org.za) registers debt counsellors, explains the debt review process and handles complaints about counsellors. The Credit Ombud (creditombud.org.za) can help with disputes about credit providers or your credit record. Legal Aid South Africa (legal-aid.co.za) may assist if you face legal action and qualify. Your Cleared Mind EAP offers confidential counselling for debt stress.