Last updated: 15 October 2026
Debt review is a legal process in South Africa that helps people who can no longer afford their monthly debt repayments. A registered debt counsellor works out a new, lower repayment plan with your creditors, and once the plan is made legally binding, your creditors cannot take legal action against you as long as you keep paying.
Debt review can be a lifeline, but it is also a long commitment with real costs and restrictions. This guide explains how debt review works, what it costs under the National Credit Regulator (NCR) fee guideline, the pros and cons, and how to get out of debt review when you are done.
Important: This article is general information, not financial or legal advice. Only an NCR-registered debt counsellor (or a court) can assess whether you are over-indebted.
What Is Debt Review?
Debt review (also called debt counselling) is set out in section 86 of the National Credit Act 34 of 2005. It is designed for consumers who are over-indebted, meaning they cannot pay all their credit agreements on time from their income after basic living expenses.
Under debt review, a debt counsellor:
- Assesses your income, expenses and debts
- Proposes a restructured repayment plan to your credit providers, usually with lower monthly instalments over a longer period
- Has the plan made legally binding through a consent order or a Magistrate’s Court order
You then make one monthly payment to a Payment Distribution Agency (PDA), which pays your creditors on your behalf.
Who Qualifies for Debt Review?
- You have a regular income (salary, business income or pension)
- You are over-indebted: after reasonable living expenses, your income cannot cover your debt repayments
- Your debts are credit agreements under the National Credit Act, such as personal loans, credit cards, store accounts, vehicle finance and home loans
Debt review is generally not suitable if you have no income at all, or if your problem is a once-off shortfall that a short payment arrangement with one creditor could fix.
How the Debt Review Process Works (Step by Step)
- Apply with an NCR-registered debt counsellor. You complete Form 16 with your income, expenses and debts, and give consent for a credit bureau check.
- Creditors and credit bureaux are notified. The counsellor must notify them on Form 17.1 within 5 business days. From this point, creditors may not start legal action to enforce those debts while the process runs.
- Assessment. The counsellor verifies your information and decides whether you are over-indebted, normally within 30 business days.
- Repayment proposal. If you are over-indebted, the counsellor proposes a restructured plan to your creditors.
- Legal order. If all creditors agree, the plan is made an order by consent. If any creditor refuses, the matter goes to the Magistrate’s Court, which can restructure the debt.
- Monthly payments through a PDA. You pay one amount each month, and the PDA distributes it to your creditors.
- Clearance. When the restructured debts are paid, the counsellor issues a clearance certificate (Form 19), and the debt review flag is removed from the credit bureaux.
How Much Does Debt Review Cost?
Debt counsellor fees are set by the NCR’s debt counselling fee guideline. Based on the published guideline figures:
| Fee | Typical amount |
|---|---|
| Application fee | R50 |
| Administration fee | R300 (often included in the first month) |
| Restructuring fee | Equal to your first month’s repayment, capped at R8,000 (excl. VAT) for a single application, or R9,000 for a joint application |
| Aftercare fee | A percentage of your monthly repayment, with a monthly cap |
| Legal fees | Depend on whether the order goes through the Tribunal or the Magistrate’s Court |
| PDA fee | A separate small monthly fee charged by the Payment Distribution Agency |
Always ask for a full written breakdown of all fees before you sign, and check that it matches the latest NCR guideline. Fees are usually built into your monthly payment.
Pros and Cons of Debt Review
Advantages
- Lower monthly repayments that fit your budget
- Legal protection against creditors repossessing assets or taking you to court while you keep to the plan
- One payment instead of many
- Interest rates may be reduced as part of the restructuring
Disadvantages
- You cannot take new credit while under debt review
- You are flagged as “under debt review” at the credit bureaux until you receive your clearance certificate
- Debt review usually lasts several years, because repayments are spread out
- Fees add to the total amount you pay
- If you miss payments, you can lose the legal protection
Alternatives to Consider First
- Talk to your creditors directly. Many will agree to a temporary payment arrangement if you ask early.
- Cut and budget. A strict written budget can free up money without a legal process.
- Debt consolidation may help if you still qualify for credit, but be careful not to take on more debt.
- Administration (through the Magistrate’s Court) is another legal option for smaller total debts.
How to Exit Debt Review
The normal way out is to pay all the debts in your restructured plan. Your debt counsellor must then issue a clearance certificate (Form 19) and file it with the national register and credit bureaux, which removes the debt review flag. Under the National Credit Act, a clearance certificate can also be issued when only a home loan remains, provided all other debts are settled and the home loan is up to date.
If your finances improve, you can also settle your debts early to get your clearance certificate sooner.
How to Choose a Legitimate Debt Counsellor
- Check that the counsellor is registered with the NCR (ask for their NCR registration number and verify it on the NCR website)
- Get all fees in writing before signing
- Avoid anyone who promises to “clear your name” instantly or asks for large upfront payments
- Make sure your payments go through a registered PDA, not into a personal bank account
If you have a complaint about a debt counsellor, you can contact the National Credit Regulator (call centre 0860 627 627).
Frequently Asked Questions
Can I get a loan while under debt review?
No. While you are under debt review, you cannot take on new credit. This restriction ends when you receive your clearance certificate.
How long does debt review take?
It depends on your debts and the restructured plan, but it often takes several years.
Will debt review stop repossession?
Once your creditors are notified and your plan is in place, creditors may not enforce the debts as long as you keep to your repayments.
What is a clearance certificate?
It is Form 19, issued by your debt counsellor when you have paid your restructured debts. It removes the debt review flag from the credit bureaux.
Does debt review include my home loan?
It can. A home loan can be included in the restructuring, and the Act allows a clearance certificate when only the home loan remains and it is up to date.
Related Guides
Conclusion
Debt review can stop the pressure from creditors and make your repayments affordable, but it is a long commitment with fees and credit restrictions. Speak to an NCR-registered debt counsellor, get every fee in writing, consider the alternatives, and only sign once you understand the full plan.
Disclaimer: This guide is for general information only and is not financial or legal advice. Fees and rules can change, so confirm current details with the National Credit Regulator or an NCR-registered debt counsellor.