If your salary no longer covers your debt repayments and your living costs, debt review is the legal process South Africa built for exactly that situation. Introduced by the National Credit Act in 2007, it lets a registered debt counsellor cut the interest on your unsecured debt, stop creditor legal action, and protect your car and home while you repay what you owe. This guide explains how it works step by step, who qualifies, what it costs, where it hurts, and how it ends.
Last updated 25 August 2026. Fee caps, timelines and legal references checked against the National Credit Act and current NCR guidance.
Debt review in one sentence
Debt review is a legal process under Section 86 of the National Credit Act in which a registered debt counsellor negotiates lower interest rates and one affordable monthly payment with your creditors, backed by a court order that stops them from repossessing your assets or suing you while you pay.
- Who it is for: people whose income cannot cover their debt repayments and living costs (over-indebted under Section 79 of the NCA).
- What it costs: nothing upfront. NCR-capped fees (R50, a once-off fee capped at R9,000, and up to R450 a month) are built into the reduced payment.
- How long: most people finish in three to five years and leave with a clearance certificate.
- What it is not: not a loan, not bankruptcy, not blacklisting. You keep your car and your house.
Watch: how debt review combines your debts into one affordable monthly payment.
What Is Debt Review?
Debt review, also called debt counselling, is a formal legal process governed by the National Credit Act (Act 34 of 2005). It exists to help over-indebted consumers by restructuring their debt repayments into a single, more affordable monthly payment. The two names describe the same thing: debt counselling is the service the counsellor provides, and debt review is the legal status your credit profile carries while the plan runs. Our debt counselling guide covers the counsellor's side of that relationship in detail.
A registered debt counsellor assesses your financial situation using credit bureau information, negotiates with your creditors to reduce interest rates and extend repayment terms, and creates a restructured repayment plan. You begin making reduced payments immediately; you do not wait for a court order. The plan is then submitted to court for a consent order, which makes it legally binding on both you and your creditors.
Debt review is not the same as debt consolidation, personal administration, or sequestration. No new loan is taken, nothing is written off, and you repay your debts in full, at lower interest, under legal protection.
How Does Debt Review Work? The Six Steps
The process follows a fixed sequence, regulated by the National Credit Regulator (NCR):
You apply through a registered debt counsellor who assesses your income, expenses and total debt using credit bureau information. Once you sign the Form 16, you are legally under debt review.
Within five business days of your signed Form 16, your counsellor sends 17.1 notices to every creditor. This triggers your legal protection and requests Certificates of Balance, the verified amount on each account.
Using those balances, your counsellor builds a restructured plan with reduced interest rates and longer terms and sends it to creditors on a Form 17.2. Creditors can accept or negotiate.
You make a single reduced monthly payment right away, to a registered Payment Distribution Agency (PDA), which pays each creditor on your behalf.
Your counsellor files a court pack at the magistrate's court for a consent order that makes the plan legally binding. Court timelines vary, but your payments and protection are already in place.
Once every restructured debt is paid, you receive a Form 19 clearance certificate. The debt review flag is removed from your credit profile and you can apply for credit again.
| Stage | What happens | Typical timeline |
|---|---|---|
| Free assessment | Income, expenses and debts checked; over-indebtedness confirmed | Same day (about 60 seconds on DS Chat) |
| Full financial review | Affordability calculation and document collection | 1 to 3 days |
| Form 16 and 17.1 notices | Legal protection starts; creditors must stop legal action | Within 5 business days |
| Creditor negotiations | Interest negotiated down, typically to 0 to 5% on unsecured debt | 2 to 4 weeks |
| Court order | Restructured plan made legally binding | Roughly 60 to 90 days |
| Monthly payments | One payment through a registered PDA | 3 to 5 years |
| Clearance certificate | All debts paid; flag removed within 7 to 21 business days | On completion |
For every form, deadline and what to expect at each stage, read the debt review process step by step.
What Happens Once You Are Under Debt Review
Day to day, three things change. Your creditors stop calling, because once the 17.1 notices go out they must deal with your counsellor and may not sue, garnishee your salary or repossess while you keep paying. Your debit orders are replaced by one payment to the PDA, which sends each creditor its share and gives you a statement every month. And your budget is rebuilt around what you actually have left after essentials, which the counsellor reviews if your circumstances change. If you lose income during the process, you tell your counsellor rather than skipping a payment, because a missed instalment lets creditors apply to terminate the review.
Who Qualifies for Debt Review?
The legal test is in Section 79 of the National Credit Act: you are over-indebted if, after reasonable living expenses, your income cannot cover your debt repayments. There is no minimum debt amount. In practice you qualify if:
- You are a South African citizen or permanent resident
- You have a regular income (employed, self-employed, or receiving a pension or grant)
- Your debt repayments exceed what you can afford after essential expenses
- Your credit agreements fall under the National Credit Act
- You are not currently under administration or sequestration
A registered counsellor must run this affordability assessment before recommending debt review. If every caller is told they qualify, the assessment is not real. Ours is free and takes about 60 seconds, and it ends with a plain no when debt review is not the right answer.
What Does Debt Review Cost?
Every fee is capped by the National Credit Regulator, and every fee is built into your reduced monthly payment. There is nothing to pay upfront.
| Fee | NCR cap | When |
|---|---|---|
| Application fee | R50 | Once, at application |
| Restructuring fee | Your first restructured instalment, capped at R9,000 | Once, from the first payment |
| Aftercare fee | About 5% of your monthly payment, capped at R450 incl. VAT | Monthly, for the term |
| Legal fee (court order) | Set by the attorney, included in the restructured payment | Once |
Put against the interest saving, the fees are small. On a R500,000 portfolio, cutting interest from 20% to 4% saves roughly R6,500 a month, more than ten times the maximum aftercare fee. The full breakdown, including what a counsellor may not charge, is in how much debt review costs.
What Are the Benefits of Debt Review?
Your total monthly debt repayment typically falls by 30 to 50%.
Unsecured-debt interest is negotiated down, often to between 0 and 5%.
Creditors cannot repossess your car or house, or take legal action, while you keep paying.
Creditors must deal with your counsellor once the 17.1 notices are served.
One monthly amount to the PDA replaces every separate debit order.
You repay in full and leave with a clearance certificate and a clean credit record.
Struggling With Debt?
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Start Free Chat AssessmentThe Disadvantages of Debt Review, Honestly
Debt review is the right tool for over-indebted people and the wrong tool for everyone else. These are the costs nobody should sign up without understanding:
- No new credit until you finish. Section 88 of the NCA bars new credit agreements while you are under review. That includes credit cards, store accounts and vehicle finance.
- It takes years. Three to five for most people. Faster is possible with extra payments, but the plan is built for consistency, not speed.
- Fees over the term. Roughly R20,000 to R30,000 across a full three-to-five-year plan, built into the payment and usually dwarfed by the interest saving, but real money.
- A flag on your credit profile. The bureaus show you as under debt review until your clearance certificate is issued.
The things people fear that are not disadvantages: your employer is not notified, your assets are protected rather than sold, and the flag comes off completely at the end. For the full balanced view, read the disadvantages of debt review and the pros and cons.
Your Car, Your House, Your Job
- Your car is protected under Section 86 and cannot be repossessed while you make your restructured payment. Read can I lose my car under debt review?
- Your house has the same protection: the bank cannot proceed with a sale in execution while the order stands. Read debt review and your home loan.
- Your job is untouched. Your employer is not notified; debt review is confidential. Read can my employer know?
What Debts Can Be Included?
Debt review covers most credit agreements regulated by the National Credit Act, including:
- Personal loans and bank loans
- Credit card debt
- Store accounts and retail credit
- Vehicle finance
- Home loans
- Overdraft facilities
- Cellphone contracts with handset financing
Debts not covered include SARS tax debt, court fines, maintenance obligations, and NSFAS student loans.
How Long Does Debt Review Take?
The duration of debt review depends on how much you owe and what you can afford each month. Most people complete it within three to five years; smaller debt loads can clear in about two. Bonuses, salary increases and extra payments all shorten the term, and your interest rates stay reduced for the whole period.
How Debt Review Ends, and What Removal Costs
When the last restructured debt is paid, your counsellor issues a Form 19 clearance certificate. The bureaus remove the debt review flag within 7 to 21 business days, every included account shows as paid up, and removal costs nothing. Exiting early, before the debts are paid, needs a court application through an attorney at roughly R5,000 to R15,000, and only succeeds if you can prove you are no longer over-indebted. There is no third way: companies selling "guaranteed removal" for a flat fee are the subject of a standing NCR warning. Our debt review removal guide covers the three legal routes, and our free NCR status check tells you which one applies to you.
Debt Review vs Other Options
Debt review is often confused with the other debt-relief routes. Here is how they compare:
| Feature | Debt Review | Debt Consolidation | Sequestration |
|---|---|---|---|
| Legal protection | Yes | No | Yes |
| Reduces interest | Yes | Sometimes | N/A |
| Keeps assets | Yes | Yes | No |
| New credit | No (during) | Yes | No |
| Court process | Yes | No | Yes |
| Pay debts in full | Yes | Yes | No |
| Needs a new loan | No | Yes | No |
After clearance, your credit profile rebuilds quickly. Most people see their score improve within 6 to 12 months, and many qualify for vehicle finance or a home loan within a year. What that period looks like is in life after debt review.
Choosing a Debt Counsellor
Check four things before you sign with anyone: an NCRDC registration number you can find on the NCR's public register, fees that match the caps above and are put in writing, a registered PDA handling your payments, and public reviews at scale. Our comparison of the top debt review companies in South Africa applies those tests to the major providers, including the places where competitors beat us.
Debt Solutions 4U is an NCR-registered debt counsellor (NCRDC2423). We have been named in the peer-reviewed Debt Review Awards three years running (Top 5 Medium finalist 2023, Top 10 Large practice 2024 and 2025) and hold a 4.9 Google rating from 477+ reviews. The whole process, from assessment to signing your Form 16, runs on DS Chat with no paperwork or office visits, and every enquiry starts with a free assessment that includes a check of your status on the NCR register.
Reviewed by a registered debt counsellor, NCRDC2423. Last updated 25 August 2026. Fifty more questions, answered short, are in our debt review FAQ.
Frequently Asked Questions
What happens in a debt review?
A registered debt counsellor assesses your income, living expenses and debts and confirms you are over-indebted. You sign a Form 16 application, your creditors are notified within five business days, and from that point they may not take legal action against you. The counsellor negotiates lower interest rates and longer terms, you start paying one reduced monthly amount to a registered Payment Distribution Agency, and the plan is made a court order. When the last restructured debt is paid you receive a Form 19 clearance certificate and the debt review flag is removed from your credit record.
How do I qualify for debt review?
You qualify if you are over-indebted as defined in Section 79 of the National Credit Act: your income, after reasonable living expenses, cannot cover your debt repayments. You also need a regular income (salary, self-employment or a pension), credit agreements that fall under the NCA, and you must not already be under administration or sequestration. There is no minimum debt amount. A registered debt counsellor must run this affordability assessment before recommending debt review, and it is free.
How much does debt review cost?
Fees are capped by the National Credit Regulator: an application fee of R50, a once-off restructuring fee equal to your first restructured instalment (capped at R9,000), and a monthly aftercare fee of about 5% of your payment, capped at R450 including VAT. Every fee is built into your reduced monthly payment, so there is nothing to pay upfront. On a R500,000 debt portfolio, cutting interest from 20% to 4% saves roughly R6,500 a month, which is why the fees are usually covered by the interest saving within the first two to three months.
How much does it cost to remove a debt review?
If you complete the process, removal is free: your debt counsellor issues the Form 19 clearance certificate and the bureaus remove the flag within 7 to 21 business days. If you want to exit early, before your debts are paid, you need a court application through an attorney, which typically costs R5,000 to R15,000 and is only granted if you can prove you are no longer over-indebted. If you applied but the court order has not yet been granted, withdrawing through your counsellor is free. Anyone charging a flat fee for 'guaranteed removal' without first checking your legal status is running a scam.
What are the disadvantages of debt review?
Four real ones. You cannot take new credit while under review (Section 88 of the NCA). The process runs three to five years, so it needs discipline. Regulated fees of roughly R20,000 to R30,000 over the full term are built into your payment, against interest savings that are usually several times larger. And an 'under debt review' flag sits on your credit profile until clearance. What is not a disadvantage: your employer is not told, your car and home are protected rather than taken, and the flag is fully removed when you finish.
Can you borrow money while under debt review?
No. Section 88 of the National Credit Act bars new credit agreements while you are under debt review, and any lender who grants one risks having it declared reckless. Adverts for 'loans for people under debt review' are either unregistered lenders or scams. If your restructured payment has become unaffordable, the legal route is to ask your debt counsellor to review the plan, not to borrow again.
Is debt review a good idea?
For genuinely over-indebted people, yes: it is the only legal mechanism in South Africa that reduces your interest rates, stops creditor legal action and protects your car and home while you repay what you owe. It is a bad idea if you can still comfortably afford your payments, if your debt is small enough to negotiate directly, or if your real goal is to avoid repaying. A free assessment with a registered counsellor tells you which side of that line you are on.
How long does debt review last?
Most people complete debt review in three to five years. Smaller debt loads can clear in around two years, and bonuses, salary increases or extra payments shorten the term. The restructured interest rates stay in place for the whole period, and your assets stay protected until the last debt is paid and your clearance certificate is issued.
Is debt review the same as blacklisting?
No. Debt review is a legal debt relief process, not a penalty listing. A debt review flag is placed on your credit profile during the process to stop new credit while you recover, and it is removed once you receive your clearance certificate. There is no official blacklist in South Africa.
What debts are included in debt review?
Debt review covers most credit agreements under the National Credit Act: 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.
