How Debt Review Works in South Africa (A Simple Guide)

What Is Debt Review?

Debt review is a legal debt relief process created by the National Credit Act (NCA) to assist consumers who are struggling to keep up with their debt repayments.

If a person is found to be over-indebted, a registered debt counsellor can help restructure their debts into a more affordable repayment plan.

The goal is simple:

to help people repay their debts without financial collapse.

Step 1: Debt Assessment

A debt counsellor reviews:

• your income

• your expenses

• all your credit accounts

If your debt repayments are higher than what you can realistically afford, you may qualify for debt review.

Step 2: Creditors Are Notified

Once the process starts:

• all creditors are notified

• credit bureaus are updated

During this time, creditors cannot continue normal collection processes while the restructuring is being arranged.

Step 3: A New Repayment Plan Is Created

Your debt counsellor negotiates with creditors to create a restructured repayment plan.

This usually means:

• lower monthly payments

• extended repayment periods

• interest reductions where possible

Step 4: Court Order

The repayment proposal is submitted to the Magistrates Court or National Consumer Tribunal for approval.

Once granted, the repayment plan becomes legally binding.

Step 5: Repayment Through a PDA

Payments are normally made through a Payment Distribution Agency (PDA) which distributes the funds to creditors.

Step 6: Clearance Certificate

Once all debts (excluding long-term assets like a home loan) are settled, the debt counsellor issues a clearance certificate, and the debt review flag is removed.

Final Thoughts

Debt review is not a punishment.

It is a legal solution designed to help people recover financially.

For many South Africans, it becomes the turning point where financial chaos finally becomes manageable.

If you’re struggling with debt payments, you don’t have to figure it out alone.

At DCSA – Debt Help & Credit Repair, we help people:

✔ Understand their financial situation

✔ Reduce monthly debt repayments

✔ Build a realistic path toward becoming debt free

👉 Visit www.dcsam.co.za