What is Debt Review in South Africa? A complete Guide
What Is Debt Review? (Quick Answer)
Debt review is a legal process created by the National Credit Act to help South Africans who cannot afford their debt repayments.
A registered debt counsellor reviews your finances and works with your creditors to:
• reduce interest rates
• extend repayment terms
• combine your debts into one affordable monthly payment
While under debt review:
• creditors cannot harass you
• legal action is paused
• you cannot take new credit
Once all your debts are repaid, your debt counsellor issues a clearance certificate and the debt review flag is removed from your credit report.
Debt review gives you legal protection and a structured path to becoming debt-free.
Debt Review at a glance
| Legal framework | National Credit Act |
| Managed by | Registered Debt Counsellors |
| Who qualifies | Consumers who are overindebted |
| Payments | Consolidated into one monthly repayment |
| Legal protection | Yes |
| New credit allowed | No |
| Typical duration | 3 - 5 years |
| Final outcome | Clearance certifficate and you are debt-free! |
Let's be honest for a moment
If you’re reading this, money might be feeling stressful right now.
Maybe there are four or five debt payments leaving your account every month.
Maybe the calls from creditors have started.
Or maybe you’re just wondering if there’s a better way to deal with everything.
The good news is: there is.
Debt review was created to help people who want to repay their debts - but simply cannot keep up with their current repayments.
It’s not a trick.
It’s not a scam.
It’s a legal system designed to help South Africans recover financially.
At Meerkat, we help thousands of people every year use debt review to reduce their repayments and regain control of their finances.
How Debt Review Works (Step by Step)
Debt review follows a structured legal process.
Step 1: You Apply
You contact a registered debt counsellor like Meerkat and provide information about:
• your income
• your monthly expenses
• your debts
Step 2: Your Financial Situation Is Assessed
Your debt counsellor reviews your finances carefully.
They look at:
• how much you earn
• what you spend on essential living costs
• how much you owe creditors
If your debt repayments are more than you can reasonably afford, you may qualify as over-indebted under the National Credit Act.
Step 3: Creditors Are Notified
Once you enter debt review, your debt counsellor formally notifies your creditors.
From this point:
• creditors must communicate through your counsellor
• collection calls usually stop
• legal protection begins
As long as you follow your repayment plan, creditors cannot take legal action or repossess your assets.
Step 4: A New Repayment Plan Is Negotiated
Your debt counsellor negotiates with creditors to:
• reduce interest rates
• extend repayment periods
• create a more affordable monthly repayment
For many people, this significantly reduces their monthly debt obligations.
Step 5: The Plan Goes to Court
The new repayment plan is submitted to a court. We attend on your behalf.
Once approved, it becomes a court order, which protects both you and your creditors
Step 6: You Make One Monthly Payment
Instead of paying several creditors separately, you make one monthly payment to a Payment Distribution Agency (PDA).
The PDA distributes the funds to each creditor.
Meerkat partners with Hyphen, one of South Africa’s most trusted PDAs.
Step 7: You Receive a Clearance Certificate
Once all debts are paid according to the repayment plan, your debt counsellor issues a clearance certificate.
This confirms that your debt review is complete.
The debt review flag is then removed from your credit report.
The Benefits of Debt Review
Debt review has helped thousands of South Africans regain financial stability.
Lower Monthly Repayments
Interest rate reductions and extended repayment terms can reduce your monthly debt repayments.
Protection from Creditors
Creditors must communicate through your debt counsellor once the process begins.
Legal Protection
As long as you follow your repayment plan, creditors cannot repossess assets or take legal action.
One Simple Monthly Payment
Debt review combines your repayments into one manageable monthly payment.
A Clear Path Out of Debt
Debt review replaces uncertainty with a structured plan that leads to becoming debt-free.
The Disadvantages of Debt Review
Debt review also comes with certain restrictions.
You Cannot Take New Credit
While under debt review, you cannot apply for new credit.
It Takes Time
Most people remain under debt review for three to five years, depending on their debt levels.
Your Credit Report Shows Debt Review
Your credit profile will display a temporary debt review flag during the process.
This is removed once you receive your clearance certificate.
What Does Debt Review Cost?
Debt counsellor fees are regulated by the National Credit Regulator (NCR).
There is a legal maximum that debt counsellors are allowed to charge.
At Meerkat, we aim to keep fees below the regulated maximum and ensure all costs are explained clearly before you apply.
Typically:
• the first payments cover administrative fees
• thereafter payments go mainly toward creditors
Always ensure you receive clear written disclosure of all fees before applying.
Common Debt Review Myths
“Debt review means you are blacklisted”
This is not true. There is no official blacklist in South Africa. Debt review simply places a temporary note on your credit profile.
“You will lose your house or car”
Debt review is designed to help protect your assets by restructuring repayments into affordable amounts.
“Debt review is a scam”
Debt review is a legal process under the National Credit Act. However, always ensure your debt counsellor is registered with the NCR.
“Only irresponsible people enter debt review”
Many people enter debt review due to life events such as retrenchment, illness, rising living costs, or unexpected financial pressure.
Is Debt Review Right for You?
Debt review may be worth considering if:
• you are struggling to keep up with repayments
• you are using credit for everyday expenses
• creditors are contacting you frequently
• legal action has been threatened
• debt is causing ongoing stress
Speaking to a debt counsellor can help you understand whether it is the right solution.
Debt Review vs Debt Consolidation
Debt consolidation involves taking out a new loan to repay existing debts.
This can work if you have a strong credit score and qualify for better interest rates.
However, if you are already over-indebted, consolidation loans may not be available.
Debt review does not require a new loan.
Instead, it restructures your existing debt into an affordable repayment plan.
Debt Review FAQs
How long does debt review last?
Most people remain under debt review for three to five years, depending on how much debt they have and what they can afford to repay.
Can you buy a house while under debt review?
No. While under debt review you cannot take on new credit, including a home loan. Once you receive your clearance certificate, the debt review flag is removed.
Can you leave debt review early?
Yes. If you settle all your debts earlier than planned, your debt counsellor can issue a clearance certificate sooner.
Does debt review affect your credit score?
Yes, temporarily. Your credit profile will show that you are under debt review, but the flag is removed once the process is completed.
Is debt review the same as being blacklisted?
No. Debt review simply places a temporary note on your credit profile indicating that you are under debt counselling.
How to Get Started with Meerkat
If debt review sounds like it could help you, the first step is simply having a conversation.
A Meerkat advisor can help you:
• understand whether you qualify
• estimate how much your repayments could be reduced
• explain the process clearly
There is no obligation to proceed.
Just clear guidance so you can make the best decision for your situation.
A Final Word
Debt can feel overwhelming.
But it does not have to stay that way.
Every week we speak to people who decide to take the first step toward fixing their finances.
That first step asking for help, is often the hardest.
If you’re ready for that conversation, Meerkat is here to help.
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