A complete
guide
What is Debt Review?
If you're struggling to keep up with your monthly debt repayments, you're not alone. Thousands of South Africans find themselves overwhelmed by rising living costs, high interest rates, and unexpected financial challenges.
Debt review is a legal process created under the National Credit Act (NCA) to help consumers regain control of their finances without losing everything they've worked hard for.
Unlike debt consolidation or taking out another loan, debt review focuses on restructuring your existing debt into one affordable monthly repayment while protecting your rights as a consumer.
How Does Debt Review Work?
When you apply for debt review, a registered Debt Counsellor carefully assesses your financial situation.
This includes reviewing your:
- Monthly income
- Living expenses
- Credit agreements
- Assets
- Financial obligations
If you're found to be over-indebted, your Debt Counsellor negotiates with your creditors to reduce your monthly instalments to an amount you can realistically afford.
Once a repayment plan is accepted and made an order of court (or confirmed through the applicable legal process), you continue paying one monthly amount through a Payment Distribution Agency (PDA), which distributes the funds to your creditors.
Who Can Apply for Debt Review?
Debt review is designed for consumers who:
- Have a regular income.
- Are struggling to meet their monthly debt repayments.
- Want to avoid legal action or repossession where possible.
- Want a structured way to repay their debt.
Every person's financial situation is different, so a full affordability assessment is essential before determining whether debt review is the right solution.
What Are the Benefits of Debt Review?
Debt review offers several important advantages:
Lower Monthly Repayments
Your repayment plan is restructured to make it more affordable based on your financial circumstances.
One Convenient Monthly Payment
Instead of paying multiple creditors individually, you make one monthly payment through a PDA.
Professional Negotiation
Your Debt Counsellor communicates with your creditors on your behalf and works toward an affordable repayment arrangement.
A Structured Path to Becoming Debt-Free
Debt review provides a clear repayment plan designed to help you settle your debt responsibly over time.
What Debts Can Be Included?
Debt review can generally include many forms of credit, such as:
- Personal loans
- Credit cards
- Retail store accounts
- Vehicle finance
- Home loans
- Overdrafts
The exact treatment of each account depends on your circumstances and the applicable legal process.
Is Debt Review the Same as Debt Consolidation?
No.
Debt consolidation usually involves taking out a new loan to pay off your existing debts.
Debt review does not involve new borrowing. Instead, it restructures your existing obligations to make repayments more manageable while following the framework of the National Credit Act.
Is Debt Review Permanent?
No.
Debt review is intended to help consumers repay their debt in a structured way.
Once all obligations that fall within the debt review process have been satisfied and the legal requirements have been met, you can complete the process and move forward financially.
Why Choose The Finance Experts?
At The Finance Experts, we understand that financial difficulties can happen to anyone.
Our experienced team takes the time to understand your unique circumstances and guide you through every step of the debt review process with professionalism, respect, and care.
Our goal is to help you regain financial stability while providing clear communication and ongoing support.
Frequently Asked Questions
Will debt review stop creditors from contacting me?
Your Debt Counsellor will engage with your creditors as part of the debt review process. The outcome depends on the legal stage of each account and your individual circumstances.
Can I keep my car?
Many consumers are able to retain financed assets during debt review by maintaining the agreed repayment arrangements. Each case depends on its facts.
Can I buy more credit while under debt review?
Debt review is intended to help you repay existing debt rather than take on additional credit during the process.
How long does debt review last?
The duration depends on your repayment plan, your financial circumstances, and how quickly your debt is repaid.
Ready to Take Control of Your Finances?
If you're feeling overwhelmed by debt, you don't have to face it alone.
The Finance Experts can assess your financial situation and explain the options available to you.
📞 Contact us today for a confidential assessment and let us help you take the first step toward financial peace of mind.