How debt review works
What is debt review?
By Lerato Molefe · 6 min read · Updated 24 June 2026
- Also called
- Debt counselling
- Governed by
- National Credit Act
- Regulator
- National Credit Regulator (NCR)
- Application form
- Form 16 (section 86)
- Exit document
- Clearance certificate (Form 19)
Debt review, also called debt counselling, is a legal debt-relief process under South Africa's National Credit Act where a registered counsellor reviews your income and debts, negotiates one reduced and affordable monthly payment with your creditors, and obtains a court order that protects you from legal action while you repay.
It is also called debt counselling - the two terms mean exactly the same thing. The process is run by a debt counsellor who is registered with the National Credit Regulator (NCR), not by your bank or a lender.
Debt review is not a loan and it does not write off what you owe. It restructures your existing debt into a single, lower monthly instalment over a longer period, with interest and fees usually reduced after negotiation. This page explains how it works, who it suits and the honest trade-offs.
Debt review in plain terms
Debt review takes all your unsecured and secured debts - credit cards, personal loans, store accounts, car finance, even your home loan - and bundles the repayments into one monthly amount you can actually afford. A debt counsellor works out that figure from a proper budget, then approaches each creditor to lower the instalment and, where possible, the interest rate.
You pay one amount each month to a payment distribution agent (PDA), which splits it among your creditors. You stop dealing with each creditor separately and the harassing calls usually stop too.
What the law actually does for you
Debt review sits in the National Credit Act (NCA). The key sections:
- Section 86 lets you apply for debt review (the application is Form 16).
- Section 87 is where a magistrate's court makes the restructuring an order.
- Section 88 protects you: while you keep paying your new plan, creditors cannot sue you, list a default or repossess goods covered by the plan.
That legal shield is the real value. It is the difference between a casual payment arrangement, which a creditor can walk away from, and a court-backed plan they must respect.
Who debt review is for
Debt review is designed for people who are over-indebted - meaning your required debt repayments are more than you can realistically pay from your income after living costs. It suits you if:
- You are falling behind or juggling debts to survive each month.
- Your debt is mostly credit agreements (loans, cards, accounts, vehicle and home finance) covered by the NCA.
- You have a stable income to fund a single reduced payment.
It is less suitable if your problem is a once-off cash-flow gap, or if almost all your debt is to people or businesses not covered by the NCA (like money owed to family or SARS).
The honest trade-off
Debt review gives you legal protection, one affordable payment and a clear finish line. In exchange:
- A debt-review flag appears on your credit profile while the process runs, so you cannot take new credit.
- Counselling fees are added to your monthly payment.
- It can take several years, especially with a home loan in the mix.
Those downsides end when you finish. Your counsellor then issues a clearance certificate (Form 19) and the flag is removed. Done properly, debt review is a structured exit from over-indebtedness, not a permanent mark.
Debt review vs other options
| Option | What it is | Key point |
|---|---|---|
| Debt review | Court-backed restructuring of existing debt | Legal protection, you keep assets, NCR-regulated |
| Debt consolidation | One new loan to pay off the others | New credit, no legal protection, can cost more |
| Administration | Older court process for small debts | Limited to set debt levels, can be slow |
| Sequestration | Declaring insolvency | You can lose assets, lasts years |
Debt review is usually the middle path: more protective than a consolidation loan, far less drastic than sequestration.
Frequently asked questions
What is debt review and how does it work?
Debt review is a legal process under the National Credit Act where an NCR-registered debt counsellor restructures your debts into one reduced monthly payment and gets a court order that protects you from creditors while you pay.
Is debt review the same as debt counselling?
Yes. Debt review and debt counselling are two names for the identical process under the National Credit Act. The person who runs it is your debt counsellor.
Does debt review clear my debt?
No. It does not write off what you owe. It restructures your existing debt into one affordable payment, usually with lower interest, so you pay everything off over a longer period.
Will debt review stop creditors from taking my car or house?
While you keep up your agreed debt-review payments, section 88 of the National Credit Act protects you from repossession and legal action on the debts in your plan. If you stop paying, that protection can fall away.
How long does debt review take?
It depends on how much you owe. Smaller unsecured debts can finish in a few years; a home loan in the plan can extend it longer. You exit when everything is paid and you receive your clearance certificate.
Can I take a loan while under debt review?
No. Taking new credit while under debt review is generally not allowed, and offers of loans for debt review clients are high-risk. The safer path is to finish the process and get your clearance certificate.
Who regulates debt review?
The National Credit Regulator (NCR) registers and oversees debt counsellors. You can verify any counsellor on ncr.org.za before signing anything.
