Everything you need to know about debt review in South Africa — answered by NCR-registered debt counsellors
Debt review (also called debt counselling) is a legal process introduced by the National Credit Act (NCA) to help over-indebted South Africans. A registered debt counsellor assesses your finances, negotiates with your creditors to reduce interest rates and monthly payments, and creates a single, affordable repayment plan that is approved by a court.
Read the full guide →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.
No. Debt review is a legal process that provides court-ordered protection and reduces your interest rates. Debt consolidation is a new loan used to pay off existing debts — it offers no legal protection and requires a good credit score. Debt review is designed for people who are already over-indebted.
Read the full guide →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.
NCR stands for the National Credit Regulator. An NCR-registered debt counsellor is legally authorised to provide debt review services under the National Credit Act. DS4U is registered under NCRDC2423, ensuring you receive professional, regulated assistance. Always verify your debt counsellor's registration on the NCR website.
You qualify if you are a South African citizen or permanent resident with a regular source of income (employment, self-employment, pension, or grants) and you are over-indebted — meaning your income is not enough to cover both your living expenses and debt repayments after paying all monthly obligations.
You need some form of regular monthly income to qualify — this can include rental income, a pension, a spouse's contribution, or government grants. It does not necessarily need to come from formal employment. A debt counsellor will assess your specific situation.
According to the National Credit Act, you are considered over-indebted if, after paying all your monthly debt obligations, you do not have enough money left to cover your basic living expenses. A debt-to-income ratio above 50% is a strong indicator of over-indebtedness.
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.
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.
Read the full guide →All debt review fees are regulated by the NCR and included in your restructured monthly payment — there are no upfront costs. Fees include a R50 application fee, a restructuring fee (up to R8,000, spread over months), an after-care fee (5% of instalment, max R450/month), and PDA distribution fees (R27.50 per account/month).
Read the full guide →No. You do not pay anything before the process begins. All fees are incorporated into your new, reduced monthly payment. Even with fees included, your total monthly payment is typically 30-50% less than what you were paying before.
No. Fees are set by the NCR through legislation. All registered debt counsellors charge the same regulated fees. Any counsellor charging more than the regulated amount, or demanding upfront payment, is acting unlawfully.
You apply through a registered debt counsellor who assesses your finances. They notify all creditors, negotiate reduced interest rates, and create a restructured repayment plan. This plan is submitted to court for a legally binding consent order. You then make one monthly payment to a Payment Distribution Agency (PDA) which pays your creditors.
Read the full guide →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.
Yes. You can make additional payments (from bonuses, tax refunds, or salary increases) to pay off debts faster. Once a debt is settled, that payment is redirected to other creditors, creating a snowball effect. Some clients complete debt review in under 3 years.
Debt review covers most credit agreements under the NCA: personal loans, credit cards, store accounts, vehicle finance, home loans, overdrafts, and cellphone contracts with handset financing. It does not cover SARS tax debt, court fines, maintenance obligations, or NSFAS student loans.
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.
No. Debt review is not blacklisting. Unless you were already blacklisted before applying, you will not be. The debt review flag is different from a default or judgment — it is a legal protection, not a penalty.
Your credit score begins improving as soon as the debt review flag is removed. Most people see significant improvement within 6 to 12 months of positive credit behaviour. A good credit score can typically be achieved within 1 to 2 years.
Read the full guide →No. Under debt review, your vehicle is legally protected from repossession by a court order. Your vehicle finance is included in the restructured plan with reduced interest rates. As long as you make the agreed payments, the bank cannot take your car.
Read the full guide →No. Your home loan is included in the debt review plan and protected by the court order. The bank cannot foreclose on your property while you are under debt review and making the agreed payments.
Read the full guide →Contact a debt counsellor immediately. Once you apply for debt review, creditors are legally required to stop all collection and legal proceedings. The sooner you apply, the stronger your protection. Do not wait until a court order for repossession has already been granted.
No. While under debt review, you cannot apply for or be granted new credit. This is by design — it prevents you from accumulating more debt and ensures you can focus on repaying your existing obligations.
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.
Read the full guide →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.
Yes. Once your creditors are notified of your debt review application, they are legally required to stop all collection activities — no more phone calls, letters, or legal threats. All communication goes through your debt counsellor.
A Section 129 notice is a legal letter your creditor must send before taking legal action against you for defaulting on payments. It gives you 10 business days to catch up on payments, seek help from a debt counsellor, or respond. It is not a summons — it is a warning and an opportunity to act.
Read the full guide →Yes — and the Section 129 notice itself tells you this is an option. You can apply for debt review at any point before the creditor obtains a court judgment. Acting quickly after receiving a Section 129 is critical to protecting your assets.
Once all debts are paid in full, your debt counsellor issues a clearance certificate (Form 19). The debt review flag is removed from your credit profile at all bureaus. You are free to apply for credit again and your credit record begins to recover.
Read the full guide →Yes, but not immediately. Lenders typically want to see 6 to 12 months of positive credit behaviour after your clearance certificate. Start with smaller credit products to rebuild your profile, and you can work towards a home loan application.
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