What is debt review? South Africa’s solution to debt

Last updated: January 2026 

This article provides general information about debt review in South Africa and is not intended as legal or personalised financial advice.  

Debt review is a legal debt rehabilitation process in South Africa designed to help over-indebted consumers repay their debts in an affordable way.  

Through debt review, a registered debt counsellor assesses a consumer’s financial situation, negotiates reduced repayments with creditors, and places legal protections in place while the debt is repaid. 

In this guide, we explain what debt review is, how it works, who qualifies, and what it means to be placed under debt review.  

Because the terms debt review, debt counselling, and debt consolidation are often confused, it’s important to understand the differences clearly. 

 

What is debt review in South Africa? 

Debt review is a debt rehabilitation program developed to assist over-indebted South African consumers while repaying their debt.

When someone applies for debt counselling and is declared over-indebted, then they may be placed under debt review.

 

This is initiated through a process that is governed by the NCR and performed by a debt counsellor in order to shield over-indebted consumers from creditors that may want to repossess their assets or take legal action, as well as lenders that want to offer more credit that may worsen the situation.

It is important to note that there is a difference between debt review and debt counselling – even though the terms are often used interchangeably within the credit industry. Let us expand more on these two terms: 

 

Debt counselling defined

Debt counselling refers to the act of working with a debt counsellor to assess whether you are over-indebted or not, and then subsequently completing an application to be placed under debt review and repay outstanding debts according to an agreed debt repayment plan. 

Your debt counsellor will request that a ‘Form 16’ be completed. This form contains all your personal details as well as a detailed outline of your financial circumstances. The information outlined in the form consists of the following:

• Earned income 
• Expenses 
• Creditor agreements and all credit-related details 

 

Completion and assessment of this form will help your debt counsellor determine whether or not you are over-indebted and should be placed under debt review. 

 

 

Debt review defined

Debt review is the term used to describe the debt rehabilitation program. When someone is placed ‘under debt review’, they agree to repay all of their outstanding debts and forgo access to additional credit until their debt is repaid.

In exchange, debt review offers a reduced repayment amount, simplified payment structure, and protection — we will go into more detail in a moment.

First introduced in 2007 by the National Credit Regulator (NCR) as part of the National Credit Act 34 of 2005, debt counselling and debt review are ideal for South Africans that are struggling to afford or repay their debts.

Once a consumer is placed under debt review, the process follows a structured legal path. Learn what happens if debt review payments are missed or the process is terminated. 

 

What does it mean to be under debt review? 

Being placed under debt review means having agreed to repay your outstanding debt and forgo access to additional credit in exchange for legal protection and additional repayment benefits. Debt review is generally suited to anyone who is over-indebted but still has a stable income and wants to repay their debts in a structured, legal way. 

There are several other benefits to debt review, namely: 

• Having one consolidated reduced payment
• Safety from being blacklisted 
• Protection from asset repossession 
• Structured strategy towards debt freedom
• The cost of debt review is included in the reduced repayment

 

Once your application to be placed under debt review is accepted, a Court order is filed, and credit bureaus update their records to indicate that you are now officially under debt review. 

It is important to note that you cannot access any additional credit when placed under debt review. This is known as a credit freeze and serves over-indebted consumers by protecting them from additional reckless lending. You should focus on catching up with your existing debt before incurring more. 

This condition protects consumers from taking on additional debt and limits the risk of further unpaid credit.  

Once the Court order is in place, credit providers may not take legal action against the over-indebted consumer, and the over-indebted consumer cannot have the debt review flag removed. While under debt review, the process cannot simply be cancelled. In certain circumstances, a debt review can be terminated or reversed through legal steps.  

Once all qualifying debts are settled, a clearance certificate is issued and the debt review status is removed from credit bureau records.  

 

Why does debt review exist in South Africa? 

Debt review exists to protect the economic welfare of South Africa by making it easier for over-indebted- consumers.

There are several core reasons why debt review – as part of the National Credit Act 34 of 2005 – was introduced in South Africa: 

• To promote ethical standards of practice in the credit industry 
• To create greater access to credit 
• To ensure fair governance and accurate information 

 

Let us explore these points in more detail: 

 

To promote ethical standards of practice in the credit industry 

Acting as a debt relief scheme for South African consumers, debt review also provides debt counsellors with strict standards of practice. Before the National Credit Act 34 of 2005 took effect, South African consumers did not have the right to inquire with creditors about their terms, allowing creditors to exploit consumers.

 

 

To create greater access to credit 

Impacting every roleplayer in the credit industry, the National Credit Act aims to empower consumers by creating a more accessible credit market, which includes promoting B-BBEE empowerment standards and ownership in the credit industry. 

 

To ensure fair governance and accurate information 

Alongside increasing consumer access to credit, the National Credit Act and debt review process aid in regulating credit information, promoting equal, non-discriminatory practices, and a consistent enforcement framework relating to consumer credit. 

 

Common misconceptions about debt review 

The debt review process has many key advantages as a rehabilitative approach to overcoming your debt. There are, however, a few misconceptions when it comes to debt review. 

 

Take note of the following before you decide to enter into the debt review process: 

• Creditor providers have a decision too 
• The debt repayment process can be lengthy 
• You will no longer be able to access new credit
• Debt review doesn’t stay on your credit record (your payment history could remain for up to 2 years)
• The debt review status is removed once a clearance certificate is issued, but repayment history may still appear on a credit report for a limited period. 

 

Let us break down each point further: 

 

Creditor providers have a decision too 

Your credit providers do not have to accept your debt counsellor’s proposal for debt repayment, nor are they obliged to form part of your debt review process. However, most creditors agree because the process offers an opportunity for them to be repaid (especially when overseen by a debt counsellor). 

 

The debt repayment process can be lengthy 

Entering into debt review does not promise a quick solution to squashing your debt. Due to a negotiated lower repayment instalment, the repayment period may extend beyond the initial deadlines. It is also important to note that the request for lower interest rates is not guaranteed – this will be something your debt counsellor will negotiate with creditor providers. 

 

You will no longer be able to access new credit

While under debt review, your credit record indicates your debt review status to notify creditors of your commitment toward debt rehabilitation, thus, preventing them from lending you more money.

 

The debt review status is removed once a clearance certificate is issued

Your credit report indicates your debt review status when you are placed under debt review. Then, once you have successfully paid off all your debt and completed the debt counselling process, your debt counsellor issues your debt review clearance certificate to confirm that all of your debts have been settled, after which the debt review status is completely removed, and you’ll be able to carefully access credit again. 

It is worth noting that all the debt repayments you make while under debt review will remain on your credit report for up to two years. However, the debt review status will be completely erased — so you can begin strengthening your credit score again.

 

Concluding thoughts 

Debt is a hyper-personalised aspect of our lives that trickles into nearly all parts of it, and sometimes it catches up with us. For thousands of South Africans struggling to keep up financially, debt review has been a sound way to address their debt and attain financial liberty. 

Now that you have a better understanding of what debt review is, and why it is South Africa’s solution to growing debt, we hope you can make a confident and informed decision about what to do next.

Understanding how debt review works allows you to make informed decisions about managing debt. If you’re considering debt review, speaking to a registered debt counsellor at My Debt Hero can help clarify whether it’s the right option for your situation.