Debt review in South Africa.
The 2026 plain-language guide.

Debt review (also called debt counselling) is a formal process under the National Credit Act, 2005 — section 86 — that protects over-indebted South African consumers from legal action by their credit providers while a registered debt counsellor restructures their monthly repayments into a single affordable amount. Once you are under debt review, credit providers cannot proceed with legal action on accounts included in the arrangement, and the restructured repayment plan is made an order of court (or tribunal). Debt review is regulated by the National Credit Regulator (NCR).

Step 1: an NCR-registered debt counsellor assesses your income, expenses and total debt. Step 2: if you are over-indebted, the counsellor formally places you under debt review and notifies all credit providers (Form 17.1) — this triggers the legal protection from further action. Step 3: the counsellor negotiates restructured repayments with each credit provider, reducing your total monthly debt instalment to an amount you can afford. Step 4: the restructured plan is made an order of court or by the National Consumer Tribunal. Step 5: you pay one consolidated amount to a registered Payment Distribution Agency (PDA) each month, which distributes to creditors. Step 6: when all debt under review is settled, you receive a clearance certificate (Form 19) and the debt-review flag is removed from your credit profile.

Most debt-review programmes run 36–60 months depending on total debt and affordable instalment. Short-term unsecured debt (credit cards, store accounts, personal loans) typically clears in 24–48 months. Home loan and vehicle finance debt — if included — extends the timeline because the asset-backed loans are usually restructured rather than settled. Your debt counsellor should provide a written projected timeline at the assessment stage; ask for it specifically.

Yes — under specific conditions. If all the debt under review is settled, you receive a clearance certificate and exit automatically. If you want to exit before all debt is settled, you either need to (a) pay off the remaining debt under review in full, (b) prove you are no longer over-indebted (you typically need a Western Cape High Court order or NCT ruling for this — it is not automatic, and credit providers can contest), or (c) the debt counsellor withdraws you because the plan is no longer working — this leaves you exposed to legal action again. There is no "I changed my mind" route once a court order is in place.

Four non-negotiables: (1) NCR registration — every legitimate debt counsellor has an NCR registration number (format NCRDC followed by digits). Verify it on the NCR website before signing anything. (2) Clear fee disclosure — debt-counselling fees are regulated, ask for the fee schedule in writing. (3) Use of a registered Payment Distribution Agency (PDA) — your monthly payments must flow through an NCR-registered PDA, not directly to the counsellor. (4) Documented timeline and exit plan — a counsellor who cannot tell you when you exit debt review is not running the process properly.

Yes — but the effect changes over time. While you are under debt review, a debt-review flag appears on your credit profile and you cannot take on new credit (this is by design, to protect the arrangement). When you receive your clearance certificate (Form 19), the flag is removed from your credit profile within seven business days under the National Credit Act — every credit bureau is required to remove it. Your credit score then begins to recover, and over 12–24 months can return to or exceed where it was pre-debt-review, because the underlying defaults that put you into difficulty are by then paid up.

No — they are four distinct legal mechanisms. Debt review is a formal NCA section-86 process protecting you from legal action while you repay over time. Debt consolidation is a new single loan that pays off other debts — it adds debt rather than restructuring it. Debt settlement is when you (or someone on your behalf) negotiate a one-off settlement amount with a creditor, usually less than the full balance — this typically requires a lump sum and damages your credit record. Sequestration is voluntary or compulsory insolvency — a court declares you insolvent, your remaining assets are realised, and unsecured debt is largely written off; the credit-record impact is severe and lasts years.

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