What is debt review?

Debt review, also known as debt counselling, is a debt relief measure in South Africa that helps over-indebted consumers get out of debt. The National Credit Act (NCA) introduced the process in 2007 to prevent 'over-indebted' consumers from being blacklisted and having to deal with the consequences thereof.

Are you struggling to pay your monthly debt repayments in time and in full? Are you struggling to cover basic living expenses? You may be 'over-indebted'.

Debt review has become a lifeline for many South Africans who are struggling to make ends meet because of unmanageable debt.

If you are earning an income but you are unable to meet your  minimum credit obligations every month, then help is available through a process called debt review.

The process protects your most important assets such as your vehicle, and ensures you have enough to cover living expenses each month. Your debt counsellor will restructure your debt in order to reduce your monthly instalments by extending the repayment terms. Depending on your circumstances it can take between 3 to 5 years to get rid of all your debt.

Debt review allows you to get out of debt in an affordable manner. This means you will no longer be able to take out further credit until you have exited the process. You can exit the process once you have paid off all your debt or if you can prove your situation has changed and you are no longer over-indebted. You will receive a clearance certificate and your credit score will reset to zero. You will be able to start your credit profile again, on a clean slate.

The process provides a safer alternative to getting a judgement on your name or being sequestrated and surrendering your assets if you are unable to pay.

If you are over-indebted, you can approach a debt counsellor to assist you in legally reducing your monthly instalments through debt review. Your debt counsellor must be registered with the National Credit Regulator (NCR), such as Debt Rescue.

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