If you’re drowning in debt and not sure where to turn, you’re not alone. Debt review has helped thousands of South Africans regain control of their finances, and it could help you too. At VHT Attorneys, we’ve compiled this comprehensive debt review FAQ to guide you through the process, from how it works to what happens once you’re debt-free.
it's crucial to commit before entering debt review
Whether you’re just starting to explore your options or you’re already under review, these answers are tailored to the South African legal and financial landscape in 2025.
General Questions About Debt Review
1. What is debt review and how does it work in South Africa?
Debt review (also called debt counselling) is a legal process under the National Credit Act (NCA) designed to help over-indebted South Africans. A registered debt counsellor works with your creditors to negotiate reduced payments and interest rates. Instead of paying multiple creditors, you pay one affordable monthly amount through a Payment Distribution Agency (PDA).
Once your repayment plan is approved by the court, creditors can’t take legal action, offering both financial relief and legal protection.
2. Who qualifies for debt review?
You may qualify if you:
- Live in South Africa
- Are over 18
- Earn a steady income
- Are over-indebted (your expenses exceed your income)
If you’re married in community of property, both partners must apply together. Already under sequestration? Then you’re not eligible for debt review.
3. How long does the debt review process take?
Most people complete the process in 2 to 5 years, depending on how much they owe. Some clients finish sooner if they make lump sum payments. The initial setup and court approval typically takes 2-4 months.
4. Can I apply for debt review online?
Yes. Many debt counselling companies allow clients to apply online. You’ll fill in a quick assessment, upload documents, and get a preliminary evaluation from a registered debt counsellor.
5. What documents are needed to start debt review?
You’ll typically need:
- South African ID
- Payslips or proof of income
- Recent bank statements
- A list of creditors and current balances
- Monthly budget or expense breakdown
Guardians of Fairness
While Under Debt Review
1. Can I use my credit card during debt review?
No. Once you’re under debt review, all credit access is frozen. You won’t be able to use existing credit cards or open new credit accounts. This rule is designed to help you avoid accumulating more debt.
2. Will my creditors still contact me during debt review?
No. As soon as the process is underway and a court order is in place, creditors must deal with your debt counsellor. If they contact you directly, you can refer them back to your counsellor or legal representative.
3. Can I still rent property while under debt review?
Yes. You can rent, but landlords or agents might run a credit check and see your debt review flag. A solid rental history and proof of stable income can help offset concerns.
4. Can I buy a car during debt review?
Unfortunately not. While you’re in debt review, you’re legally restricted from taking on new credit, including vehicle financing. However, once you’re issued a clearance certificate, you’re free to apply again.
5. Will I be listed on the credit bureau while under debt review?
Yes. All major credit bureaus in South Africa will flag your profile with a “under debt review” status. This is removed once you complete the process and receive your Form 19 Clearance Certificate.
Financial Implications
1. Does debt review affect my credit score?
Yes, initially. Your credit score may dip once the “under review” flag is added. However, over time, consistent repayment improves your financial standing. Once the process is complete, your score can recover and even improve.
2. How much will I pay monthly under debt review?
Your monthly repayment is based on your affordability. A debt counsellor will assess your budget to ensure you can cover essentials (like rent and groceries) while paying off your debts. Many clients see a 30–50% reduction in their monthly instalments.
3. Is debt review cheaper than paying debts normally?
Yes. Creditors often agree to lower interest rates and waive certain fees. This means you pay back less overall than if you were to continue paying your debts separately—especially with high-interest loans.
4. What fees are involved in the debt review process?
While fees vary, they’re regulated by the National Credit Regulator (NCR) and are included in your repayment plan. These may include:
- Application fee
- Restructuring fee (one-time)
- Monthly service fee
- Legal fee (for court order)
A registered debt counsellor will disclose all fees upfront and transparently.
5. Will my interest rates be reduced?
Yes. In most cases, your debt counsellor negotiates reduced interest rates, sometimes as low as 5–10%, down from 20%+. This significantly reduces your total repayment amount.
Exiting Debt Review
1. How do I get out of debt review legally?
Once you’ve paid off all the debts included in the plan, your debt counsellor issues a clearance certificate (Form 19). This gets sent to all credit bureaus, clearing your record.
2. What is a clearance certificate in debt review?
This legal document confirms that you’ve successfully completed the debt review process. It removes the “under review” flag from your credit profile and allows you to access credit again.
3. How long after debt review can I get credit again?
Once your clearance certificate is issued and processed (usually within 21–30 days), you may begin applying for credit again. That said, start slowly and rebuild your credit profile responsibly.
4. Can I cancel debt review at any time?
No. You can’t simply walk away. Once under review, you can only exit if:
- You settle all debt, or
- Obtain a court order rescinding the process
This is why it’s crucial to commit before entering.
5. Will my credit score improve after debt review?
Yes, especially if you remain disciplined. Once the debt review flag is removed, and your payment history is solid, you can rebuild a strong credit profile over time.
remove debt review
Risks and Concerns
1. What happens if I miss a payment during debt review?
Missing a payment can terminate your legal protection, leaving you vulnerable to legal action or repossession. Always communicate with your counsellor if there’s a change in income or an emergency.
2. Can debt review lead to blacklisting?
While your credit profile is flagged, debt review is not blacklisting. It’s a legal, regulated solution to avoid blacklisting. Once completed, the flag is removed, and you’re in a better position to rebuild.
3. What if I change jobs or lose my income?
Let your debt counsellor know immediately. Your plan can often be adjusted temporarily. However, no income = no ability to remain under debt review.
4. Are debt review companies regulated?
Yes. All debt counsellors and companies must be registered with the National Credit Regulator (NCR). You can verify a counsellor’s registration here: ncr.org.za
5. Can I trust all debt counsellors?
Unfortunately, no. Some unregistered or unethical operators exist. That’s why working with a reputable, legally experienced firm like VHT Attorneys ensures your protection.
Excellent service, thank you. I like the fact that you guys also use whatsapp as means of communicating because sometimes one can forget about that important email. Thank you and keep up the good work.
Final Thoughts
Debt review isn’t a weakness, it’s a way to take control.
In a country where over 10 million South Africans are credit-impaired, debt review offers a structured, protected path to recovery. At VHT LAW, our legal team works closely with registered debt counsellors to ensure you’re informed, protected, and empowered every step of the way.
If you still have questions about the process, or you’re ready to take the first step, we’re here to help.
Jamie-Lee Braaff
Attorney
WHO ARE WE AT VHT
VHT Attorneys is a boutique law firm with a large vision. We provide innovative legal solutions with a renowned standard of integrity and confidentiality.
We help our clients:
- Remove Debt Review Status
- Commercial & Corporate Law
- Labour Law
- Dispute Resolution / Litigation
