Everything You Need to Know About Debt Review in South Africa

Debt can feel overwhelming, especially when repayments become unmanageable. If you’re struggling with debt, know that you’re not alone. Approximately 10 million South Africans reportedly struggled to repay their debts in 2024, being at least three months behind on payments or facing legal action.

Amidst these statistics, there’s hope. Here, we’ll break down debt review, covering how it affects your credit and why it’s a powerful tool to alleviate your financial strain and help you regain freedom.

What is Debt Review?

The National Credit Act (NCA) introduced debt review as a legal process to help over-indebted consumers manage their debt. Debt review helps you make your debt payments more manageable. A registered debt counsellor works with you to create a new payment plan,  ensuring you can meet your obligations while also protecting you from losing your belongings or facing legal problems.

How Does Debt Review Work?

Here’s a simplified breakdown of how it works:

• Assessment – A debt counsellor evaluates your finances to determine if you qualify for debt review.
• Negotiation – The counsellor negotiates with creditors for lower interest rates and extended repayment terms.
• Revised Payment Plan – A new, affordable monthly payment is set up.
• Legal Protection – You’re safeguarded from legal action as long as you adhere to the new plan.
• Clearance Certificate – Once all debts are settled, you receive a clearance certificate and your credit profile is restored.

What is the Impact of Debt Review on Your Credit Score?

While under debt review, you won’t be able to take on new credit. However, the process protects your credit profile from further damage by ensuring you make structured payments. Once you complete debt review, your status is removed, allowing you to rebuild your credit score responsibly.

The Benefits of Debt Review

✔ Prevents asset repossession

✔ Combines multiple debts into one affordable repayment

✔ Reduces stress and financial pressure

✔ Protects you from legal action by creditors

✔ Helps you regain financial stability

How To Exit Debt Review Successfully

Follow your payment plan, and you’ll complete debt review successfully. Once all debts (except home loans) are paid, your debt counsellor will issue a clearance certificate, which removes the debt review flag from your credit report.

Is Debt Review Right for You?

If you’re finding it difficult to pay your bills each month and you’re worried about falling behind, debt review can help. It gives you a clear plan to manage your debt and, with good financial habits, helps you become debt-free.

Where Do I Get Professional Help?

At Zero Debt, we understand the challenges South Africans face with debt. That’s why we offer expert debt review services, tailored to your unique situation. Our 4.9-star Google rating and proven track record of issuing thousands of clearance certificates demonstrate our commitment to guiding you toward financial well-being.

Find relief from financial overwhelm. Contact us today for a free consultation to determine if debt review is right for you.