NCR & the law
Debt review vs debt consolidation
By Lerato Molefe · 6 min read · Updated 24 June 2026
Debt review and debt consolidation are different solutions: debt review is a court-backed legal process that restructures your existing debt into one protected payment regulated by the NCR, while debt consolidation is simply taking one new loan to pay off the others, which is new credit, carries no legal protection and can cost more overall.
Confusing the two leads people to the wrong product. This page makes the difference clear.
Here is a side-by-side comparison, the pros and cons of each, and how to choose.
The core difference
- Debt review keeps your existing debts but restructures them: one lower payment, negotiated interest, legal protection from creditors, and a clearance certificate at the end. No new loan is taken.
- Debt consolidation takes a single new loan to settle your other debts, leaving you with one repayment to one lender. It is new credit, with no court protection.
In short: debt review reorganises what you owe under legal protection; consolidation replaces several debts with one new one.
Side-by-side comparison
| Feature | Debt review | Debt consolidation |
|---|---|---|
| What it is | Court-backed restructuring | One new loan |
| New credit taken? | No | Yes |
| Legal protection from creditors | Yes (section 88) | No |
| Credit flag while active | Yes | No |
| Interest | Often reduced by negotiation | Depends on the new loan |
| Who qualifies | Over-indebted consumers | Those who still qualify for credit |
| Regulated by | NCR (debt review rules) | Normal lending rules |
| Risk | Restricted credit while active | Can borrow more and slip back |
Pros and cons of each
Debt review - pros: legal protection, lower negotiated interest, one affordable payment, keep your assets. Cons: a credit flag while active, no new credit, fees added, can take years.
Debt consolidation - pros: no flag, simpler single repayment, you keep access to credit. Cons of debt consolidation: no legal protection, you may pay more in total over a longer term, and the temptation to run up the old accounts again can leave you deeper in debt. It only works if you are disciplined and still creditworthy.
Which should you choose?
Choose debt review if you are genuinely over-indebted, falling behind, or facing legal action - you need the protection and the negotiated relief.
Choose debt consolidation if you can still afford your debts, still qualify for a reasonable new loan, and simply want one tidier repayment - and you trust yourself not to rack up the cleared accounts again.
If you are not sure, a free assessment from an NCR-registered counsellor will tell you honestly which fits.
Frequently asked questions
What is the difference between debt consolidation and debt review?
Debt review is a court-backed restructuring of your existing debt with legal protection and no new loan. Debt consolidation is taking one new loan to pay off the others, with no legal protection and the risk of paying more overall.
Is debt consolidation the same as debt review?
No. Debt consolidation is one new loan replacing several debts. Debt review restructures your existing debts under court protection without new credit. They are different products with different risks.
What are the disadvantages of debt consolidation?
No legal protection from creditors, you may pay more in total over a longer term, you need to still qualify for the new loan, and the freed-up accounts can tempt you back into more debt.
Which is better, debt review or debt consolidation?
Debt review is better if you are over-indebted or facing legal action, because of the protection and negotiated relief. Consolidation suits those who still qualify for credit and just want one tidy repayment.
Does debt consolidation flag my credit profile?
No, it is just a new loan, so there is no debt-review flag. But it offers no legal protection, unlike debt review. The trade-off is protection versus an unflagged profile.
Can I switch from debt consolidation to debt review?
Yes. If a consolidation loan has not solved your over-indebtedness, you can apply for debt review through an NCR-registered counsellor, who will assess whether you qualify.
