🛠️ How Does Debt Review Work?
Here’s how the process typically works with a registered debt counsellor, like Debt Check:
- Assessment
Your income, monthly expenses, and debts are evaluated. If you are declared over-indebted, you qualify for debt review.
- Legal Protection Begins
Once under debt review, creditors are legally barred from taking further legal action (like repossessions or garnishee orders).
- Debt Restructuring
Your counsellor negotiates with creditors to:
- Lower interest rates,
- Extend repayment terms,
- Consolidate multiple payments into one manageable monthly installment.
- Court Order Issued
The restructured plan is made legally binding through a court order or consent order.
- Repayment & Support
You make a single monthly payment via a Payment Distribution Agency (PDA), while your counsellor monitors compliance and supports your progress.
✅ Key Benefits of Debt Review
- Legal protection from creditors.
- No more harassment from debt collectors.
- One simplified, affordable monthly repayment.
- Reduced stress and improved budgeting control.
- A structured pathway to becoming debt-free.
⚠️ Important Considerations
While debt review offers strong protections, it’s important to understand the limitations:
- You cannot take on new credit during the process.
- Your credit record is flagged as “under debt review” (but this is removed once you complete the process).
- You must remain committed to the payment plan — missing payments may lead to cancellation.
🧾 How Long Does Debt Review Take?
On average, debt review can last between 36 and 60 months, depending on the amount of debt and your repayment ability.
Once you’ve paid off your debts (except your home loan), you receive a Clearance Certificate (Form 19) — and your credit record is updated accordingly.
🏁 What Happens After Completing Debt Review?
Once you’ve paid off all the debts under review:
- A Clearance Certificate is issued.
- The debt review flag is removed from your credit report.
- You can begin rebuilding your credit score and applying for credit again, if needed.
📞 Start Your Journey to Financial Freedom
At DebtCheck, we’ve helped thousands of South Africans regain control of their finances through professional, compassionate debt counselling.
✅ Free, no-obligation assessment
✅ Registered with the NCR
✅ Transparent support throughout your journey
👉 Start your free debt assessment now
🧠 FAQs About Debt Review
Q: Will debt review affect my job?
No. Being under debt review is a private matter and doesn’t affect employment unless you apply for a job requiring credit clearance.
Q: Can I exit debt review early?
Yes, if you settle your debts in full or bring your accounts up to date — a counsellor can apply for early termination.
Q: What if I miss a payment?
Missing payments can cause the plan to fail and may allow creditors to take legal action again. It’s essential to stay on track or communicate with your counsellor if you’re struggling.
