How debt review works
Disadvantages of debt review and debt counselling
By Lerato Molefe · 6 min read · Updated 24 June 2026
The main disadvantages of debt review are that a debt-review flag sits on your credit profile while it runs, you cannot take new credit, regulated fees are added to your payment, the process can last several years especially with a home loan, and once a court order is granted, exiting before you are paid up usually needs a court application.
None of these are hidden traps - they are the cost of the legal protection debt review gives you. But you should understand them clearly before you sign.
This page lays out every real downside honestly, alongside who feels them most, so you can weigh debt review against your situation. The benefits are covered on a separate page.
1. You cannot take new credit
While you are under debt review, you cannot legally take new credit - no loans, store cards, credit cards or even some cellphone contracts. This is the point: new debt would undo your plan. But it bites if you have an emergency or want to buy a car or home during the process.
Ignore any advert offering 'loans for debt review clients'. Taking such a loan is generally not allowed under your plan and these offers are often predatory. The safe route is to finish review first.
2. The flag on your credit profile
A debt-review status flag appears on your credit profile from the day you apply until you finish. Lenders see it and will decline new credit. It is not a default or judgment, and it is removed when you get your clearance certificate, but while it is there your access to credit is closed.
3. Fees are added to your payment
Debt review is not free. Regulated fees - an admin fee up to R300, a once-off restructuring fee up to R8,000, a monthly after-care fee of 5% of your instalment (max R450) and PDA fees - are added to your monthly payment. These are NCR-regulated maximums, but they do mean a slice of your payment goes to running costs, not your debt. A counsellor must disclose them upfront.
4. It can take years
Debt review is not a quick fix. Unsecured debts may clear in a few years, but if your home loan is in the plan it can run much longer because you are paying a large asset off at a reduced rate. You need to commit to the plan for its full term to reach your clearance certificate.
5. Exiting early is hard
Once a magistrate's court has granted the order, you cannot simply cancel. To exit before you are paid up, you generally need a court application to rescind or withdraw the order, which costs money and is not guaranteed. Before a court order is granted it is easier to withdraw. Either way, be sure debt review is right for you before the order is made.
6. It only covers NCA credit
Debt review restructures credit agreements covered by the National Credit Act. It does not cover money owed to SARS, municipal accounts, maintenance, or informal loans from family. If a big chunk of your debt sits outside the NCA, debt review may not solve the whole problem.
Frequently asked questions
What are the main disadvantages of debt review?
You cannot take new credit, a debt-review flag sits on your profile while it runs, regulated fees are added to your payment, it can take years, and exiting early after a court order usually needs a court application.
What are the disadvantages of debt counselling?
They are identical to debt review since it is the same process: no new credit, a temporary credit flag, fees added to your monthly payment, a multi-year timeline, and difficulty exiting once a court order is granted.
Can I get credit while under debt review?
No. Taking new credit is generally not allowed under debt review, and 'loans for debt review clients' offers are high-risk and often predatory. The safe path is to finish review and get your clearance certificate.
Does debt review ruin my credit score?
It places a temporary status flag, not a default, on your profile while active. It is removed once you finish. Many people enter debt review already behind, so it often protects a profile from worse damage.
Can I cancel debt review if I change my mind?
Before a court order is granted, withdrawing is relatively easy. After the order, you generally need a court application to rescind it, unless you have paid up and qualify for a clearance certificate.
Are debt review fees worth it?
The fees buy you legal protection, negotiated lower instalments and one manageable payment. For someone genuinely over-indebted, that structure is usually worth the regulated cost. For a temporary cash-flow gap, it may not be.
Does debt review cover all my debts?
Only credit agreements under the National Credit Act - loans, cards, accounts, vehicle and home finance. It does not cover SARS debt, municipal bills, maintenance or informal loans.
