FAQs

What is debt review? 

Debt review is a legal process regulated by the National Credit Act (NCA). A registered debt counsellor assesses your finances, negotiates reduced interest rates with your creditors, and presents a restructured repayment plan to the court. Once approved, you make one affordable monthly payment through a Payment Distribution Agency (PDA).  During debt review, your assets are legally protected from repossession, creditors cannot harass you, and you cannot take on any new credit.  

Is debt review the same as blacklisting? 

No. Debt review is a legal debt relief process — not blacklisting. A debt review flag is placed on your credit profile during the process to protect you from further credit and creditor action. This flag is removed once you complete the process and receive your clearance certificate. 

Can I apply for debt review if I am already behind on payments? 

Yes — and the sooner, the better. If you are behind on payments, creditors may be preparing legal action. Applying for debt review triggers immediate legal protection, stopping creditors from repossessing your assets or obtaining judgments against you. 

Will debt review affect my credit profile? 

During debt review, a flag is placed on your credit profile. This is a protective measure — it prevents creditors from taking action against you and stops you from taking on more debt. Once you complete the process and receive your clearance certificate, the flag is removed.  Remember every monthly payment you make through the Payment Distribution Agency (PDA) is reported to the credit bureaus. This builds a positive payment history, which is the single most important factor in your credit score. 

Can I apply for credit while under debt review? 

No. Credit providers are legally prohibited from extending any new credit to you while under debt review. This includes loans, credit cards, store accounts, and vehicle finance.  While this may seem restrictive, it also serves a critical protective purpose: it prevents you from accumulating more debt while you are working to pay off your existing obligations. It also signals to creditors that you are taking responsible action to address your financial situation — not simply ignoring your debts. 

Is debt review the same as sequestration or bankruptcy? 

No. With sequestration, your assets are liquidated (sold) to pay creditors and you lose everything. With debt review, your assets are legally protected and you repay your debts in full through affordable monthly payments. Debt review is specifically designed to prevent sequestration. 

What documents do I need to apply? 

You will need your South African ID, latest payslip or proof of income, 3 months of bank statements, and a list of all your credit agreements. Your debt counsellor will guide you through exactly what is needed during the assessment. 

How long does it take? 

This depends on your repayment plan and circumstances.  Most clients complete debt review within 3 to 5 years, depending on the amount of debt and repayment capacity. You can speed up the process by making additional payments from bonuses or salary increases. During this time, your assets are protected and interest rates remain reduced. 

What debts are included in debt review? 

Debt review covers most credit agreements under the NCA: personal loans, credit cards, store accounts, vehicle finance, home loans, overdrafts, and cellphone contracts. It does not cover SARS tax debt, court fines and maintenance obligations. 

What happens if I cannot afford my debt review payments? 

Contact your debt counsellor immediately. They can negotiate a temporary payment reduction or holiday with your creditors. If your income has permanently changed, the plan can be restructured. Never just stop paying — communication is critical. 

Can I exit debt review early? 

You can apply to exit debt review if your financial situation improves significantly and you can afford to settle your debts or resume original payments. However, this requires a court application and is only advisable if you can genuinely afford your debts without protection. 

It is important that you fully understand the process before proceeding.