What Is Debt Review? (Debt Review Meaning)
Debt review is a legal debt relief process in South Africa that helps people who are struggling to manage multiple debts. Under the National Credit Act (NCA), debt review, also known as debt counselling, allows a registered debt counsellor to assess your financial situation, negotiate more affordable repayment terms with creditors, and consolidate your repayments into one manageable monthly instalment.
The process offers legal protection from creditor harassment and debt enforcement, as long as you stick to the agreed repayment plan.
Why South Africans choose debt review
-
Legal protection from creditor action
-
Lower monthly debt instalments
-
Reduced interest rates in many cases
-
One simplified monthly payment
-
Protection for your assets
-
A structured and realistic path to becoming debt free
- Meerkat has been voted as one of the Top 5 National Debt Counselling companies in South Africa.
Read this blog post about how The Dlomo family saved R23 000 on their monthly debt repayment thanks to Meerkat!
How Does Debt Review Work in South Africa?
Here is a clear breakdown of how debt review works from beginning to end.
1. Financial Assessment
A registered debt counsellor reviews your income, expenses, and debts to determine whether you qualify for debt review.
2. Creating an Affordable Repayment Plan
The counsellor prepares a realistic repayment plan based on what you can afford after essential living expenses.
3. Negotiation With Creditors
Your counsellor negotiates with your creditors to reduce interest rates and set up a consolidated and more affordable payment structure.
4. Legal Protection Begins
Once your creditors are notified, you are protected by law. Creditors must communicate with your debt counsellor rather than contacting you directly.
5. Single Monthly Payment
You make one reduced payment to a Payment Distribution Agency (PDA). The PDA distributes the funds to each creditor on your behalf.
6. Receiving Your Clearance Certificate
When all debts included in the plan are fully settled, you receive a debt review clearance certificate. This formally ends the process and updates your credit record.
Pros and Cons of Debt Review
Benefits
✔️ You are legally protected from creditor action
✔️ Interest rates and monthly instalments are reduced
✔️ Payments are simplified into one instalment
✔️ Your assets are safer from repossession
Considerations
⚠️ You cannot take on new credit during the process
⚠️ The repayment period may be longer
⚠️ Your credit profile will show that you are under debt review until you complete the programme
⚠️ Not every type of debt can be included if legal action has already started
Watch this video with Founder & CEO of Meerkat, David O'Brien as he discusses the process
How to Choose a Legitimate and Reliable Debt Review Company in South Africa
Instead of listing individual providers, this section focuses on how consumers can tell whether a company is trustworthy and compliant. This keeps your content authoritative without promoting competitors.
1. Check for NCR Registration
A legitimate debt review company must be registered with the National Credit Regulator (NCR).
Ask for their NCRDC number and verify it on the NCR website.
2. Look for Transparent Fees
Regulated fees should match the NCA guidelines. A trustworthy provider will explain all costs clearly before you sign anything.
3. Check Their Communication Standards
A reputable company will:
-
respond promptly
-
explain the process clearly
-
provide written documentation
-
avoid pressure tactics
4. Read Client Reviews
Look at independent review platforms for real feedback. You do not need to name competing brands, but referencing reviews in general reinforces credibility.
5. Confirm They Use a Registered PDA
All payments under debt review must go through a registered Payment Distribution Agency. This ensures your money is handled securely and correctly.
6. Ensure They Offer Ongoing Support
Debt review is a multi-year process. Choose a company that provides:
-
regular updates
-
accessible support
-
clear communication from start to finish
Frequently Asked Questions (FAQs)
One of the disadvantages of debt review is that when you are in the debt review process, you will not be able to borrow money (take out loans or use credit).
What's important to note about this is that it is only temporary. Once you've successfully completed the process, you will be able to apply for credit again. And, if you are already struggling to pay your debt and you've missed some of your debt repayments, you may not be approved for further credit.
Your best chance at improving your chances of securing credit in the future is to go under debt review.
2. How long does the debt review status last?
The time you stay in debt review is dependent on your debt amount and affordability. Typically, it ranges from 36 to 60 months.
3. Can you exit debt review before completing it?
Yes, but only under specific conditions, such as fully settling your debts or upon a court ruling.
4. What happens when you are done with debt review?
When you are done paying debt review, your debt counsellor will issue you with a clearance certificate and credit bureaus will remove the debt review flag from your credit report. You are now free to start applying for credit again!
Find out more about the advantages and disadvantages of the debt review process here.
5. How do you qualify for debt review?
To qualify for debt review, you must be earning an income and be considered to be over-indebted (struggling to pay your monthly debt repayments).
6. What is the red flag on debt review?
The red flag on debt review refers to the warning that is placed on your credit report when you are in the debt review process. This flag is removed when you have successfully completed the process. The only reason it is temporarily in place is to let creditors know that you cannot access any further credit for the time being. This is in fact for your protection. You can't get rid of debt by creating more debt.
7. How can you remove yourself from debt review?
If you have paid up all you debt but still have the debt review flag on your credit report, you can't clear yourself from debt review, but you can get Meerkat to remove you.
Read this blog post to find out how.
8. How much does it cost to remove debt review?
The cost to remove debt review at Meerkat is R3000 if you have your paid up letters.
9. Can debt be written off in South Africa?
Debt can be written off in South Africa, but only if it meets strict criteria. Read this blog post to find out more.
10. What are the consequences of going under debt review?
A real chance at getting out of debt and improving your chances of securing credit or a loan in the future. You can get a loan after debt review, but you may need to build your credit score again for a few months before so.
11. How can I clear my debt review?
You can only clear debt review if you've paid up all your debt according to the debt review repayment plan, or your debt has prescribed, or you are no longer considered over-indebted.
Read about debt review removal here.
How Meerkat Can Help
At Meerkat, we’re dedicated to helping you take charge of your financial future. Our expert debt counsellors work with you to create a manageable repayment plan, ensuring you can meet your obligations without sacrificing your well-being. Contact us today to start your journey to financial freedom.
We've also been voted as one of the Top 5 Debt Counselling Practices in South Africa!
Your journey to financial freedom starts here.
Leave your details and we’ll give you a call back to discuss how we can help.