Can You Get a Loan While Under Debt Review?

If you're currently under debt review or considering it, you might be wondering: "Can I still apply for new credit while I’m under debt review?" Short answer — nope. Not from a registered credit provider anyway. Let’s unpack why that is and what your options are moving forward.

What is Debt Review and Why Is It Important?

Debt review is a legal process in South Africa that helps people who are struggling with their debt. It gives you a chance to breathe, restructure what you owe, and avoid blacklisting or losing assets like your car or home.

When you enter debt review, a certified debt counsellor will help you:

• Review your total debt
• Negotiate reduced payment terms with creditors
• Create one manageable monthly repayment plan
• Protect your assets from repossession

Debt Review Centre can guide you step-by-step through this process. Click here to speak to a certified counsellor.

Why You Can't Apply for New Credit During Debt Review

Okay, let’s address the big question: Can you apply for a loan or credit card while you're under debt review?

The truth is — no, you can’t. It’s straight-up not allowed under the National Credit Act. Here’s why:

• When you're under review, you're flagged on the credit bureau.
• This flag is a warning to all registered credit providers that you’re already struggling with credit.
• Issuing more credit to someone already over-indebted is considered reckless credit — and that's illegal.

Trying to get new credit during this time could backfire badly, and any lender offering it might not be legal. It could also mess up your whole debt review process.

But What If I Really Need a Loan?

We get it — emergencies happen. But while under debt review, the law is very clear. You can't get new credit from a registered credit provider. Period.

There might be scammers out there promising “quick loans even if under debt review.” Be careful — those shady deals often come with hidden costs and zero protection.

What Happens After You Finish Debt Review?

Now, here’s the good news. Once you've completed debt review — meaning all your unsecured debt is settled — you’ll receive a clearance certificate.

This certificate means:

• You’re no longer under debt review
• Your debt review flag gets removed from your credit profile
• You can now apply for credit again — normally and legally

Many people think the effect of debt review lasts forever — but that’s not true. Once you’re through it and cleared, your credit life can start anew.

Smart Tips for Life After Debt Review

Just because you can apply for credit again doesn’t mean you should rush in head-first. Start fresh but responsibly:

• Rebuild your credit slowly — start with a small account like a phone contract
• Budget wisely and avoid impulse purchases
• Use credit only when needed — not to fund a lifestyle
• Check your credit record regularly

Ready to begin your financial recovery? Check out our post on how to restore your credit after debt review.

Final Thoughts

Going through debt review is about getting your finances back on track. Yes, it means no new loans while you're busy sorting out what you already owe — but that’s exactly the point. It’s a reset button. Once you’re done, you’ll be better equipped to manage credit responsibly.

Still unsure or have questions about your situation? Speak to our certified team at Debt Review Centre. We’re here to help you through every step — no judgment, just solutions.

Remember: Getting through debt review is tough — but so are you!