WHAT IS DEBT REVIEW AKA DEBT COUNSELLING

 Debt Review is a Voluntary Program where the consumer approaches the Debt Counsellor to assess whether the consumer is Over-Indebted or not. 

You Volunteer to be Placed Under Debt Review

You cannot be placed under debt review for not paying your debt. You volunteer to be placed under debt review when you feel that you cannot meet your debt repayment obligations.

 What is Debt Review

Debt Review,  or Debt Counselling, is a debt solution introduced by the National Credit Regulator under the National Credit Act for over-indebted consumers who are struggling to manage their finances.

The aim of the debt review program is to rearrange  (reduce) all the consumer's account instalments into one affordable instalment. And most importantly to protect consumers from credit providers taking legal action and repossessing goods and property 

How does Debt Review Work

Debt review is the process whereby a debt counsellor assesses a client’s outstanding debt and implements a restructured debt repayment plan. This will be done through the process of renegotiating with credit providers in order to reduce the original repayment instalments and repayment terms.

A new affordable monthly budget and payment plan will be drawn up by a debt counsellor as agreed upon by all credit providers.

The consumer will then make one monthly payment through an accredited National Payment Distribution Agency (NPDA) who in turn will distribute the payments to the credit providers until all debt is paid in full. 

Once all the debts are paid in full, the Debt Counsellor will issue the consumer with a Clearance Certificate. 

What happens while under Debt Review

Once the Debt Counsellor declares you over-indebted, this information is submitted to all Credit Bureaus - the debt review flag will be displayed on your credit record and will stay on your credit bureau profile until your either settle all your accounts or you cancel the debt review program. 

You will no longer be able to buy on credit while you are still under debt review.

However once you have cancelled the debt review program or settled all accounts and received a Clearance Certificate, you will be able to buy on credit again.

Can I cancel Debt Review?

Click here to see debt review cancellation regulations: Cancel Debt Review