Debt Review vs. Debt Consolidation vs. Administration: Which One Will Save You the Most in 2025?

When debt starts to pile up, the panic usually isn’t far behind. And when it comes to choosing the right debt solution in South Africa, the options can get confusing quickly. So, which one actually puts the most money back in your pocket? Let's break down Debt Review, Debt Consolidation, and Administration – and find out which one really saves you the most in 2025.

1. Debt Review – The Economical Choice

What is Debt Review?

Debt Review is a process where a registered debt counsellor works with you and your creditors to restructure your repayment plan – but the real winner here is the interest rate reduction. In many cases, your interest rates can be dropped to under 5%!

Why It Saves You the Most

Lower Interest Rates: Less interest = faster debt clearance = less money spent overall.
Shorter Repayment Terms: Your debt is structured to be paid off faster than the original terms.
Exit Option: Once your unsecured debts (except for your bond) are cleared, you can exit the review process.

Things to Keep in Mind

Debt Review does not cover bonds (home loans).
You need steady income to qualify.
You’ll be under a formal process that will reflect on your credit record while you're under review – but don’t worry, this clears once you exit.

2. Debt Consolidation – Depends on the Deal

What is Debt Consolidation?

This is when you take out one big loan to pay off a bunch of smaller ones. Sounds easy? It can be – but only if the new loan has a lower overall interest rate.

When Debt Consolidation Works

If you're paying off debts with interest rates like 24%, 25%, or even 28%, then taking a consolidation loan at 18% can save you money.

Easier to manage: One monthly payment instead of five.
Cost-effective only if the new interest rate is lower.

But Be Careful

Higher interest rate = more expensive loan. Taking out a 30% interest-rate loan to consolidate 25% debts makes things worse.
New fees apply. Setup fees and credit life insurance may apply on the new loan.
It’s still a credit agreement. You’re taking on new debt to cover old debt.

3. Administration – The Worst of the Three

What is Administration?

It’s a legal process where an administrator manages your payments, but honestly – it’s very outdated, inefficient, and expensive.

Why It’s the Most Expensive Option

You pay very little each month, which means it will take you forever to pay off your debts.
No clear end date. Unlike Debt Review or Consolidation, there’s no structured timeline for when you’ll be debt-free.
Rarely used these days due to changes in the National Credit Act.

In short: if you're considering Administration, stop and re-evaluate. There are usually better options out there – especially with recognised debt review professionals.

So, What’s the Best Option for 2025?

Let’s Summarise:

Debt Review – Best for lowering total amount paid and clearing debt faster.
Debt Consolidation – Works if the loan offer is at a lower interest than what you're currently paying.
Administration – Least desirable, expensive, and long-winded.

Before You Decide

Ask yourself:

What interest rates are you currently paying?
What kind of debts are they (unsecured like credit cards vs. secured like home loans)?
What repayment terms can you realistically commit to?

Every person’s situation is different. What works for your neighbour might send you deeper into the red. That’s why it’s so important to get in touch with qualified debt counsellors who can help you decide the best route.

Final Thoughts

The bottom line? In most scenarios, Debt Review is going to save you the most money and get you out of debt faster. Consolidation can help if the figures make sense. Administration? Probably best avoided in 2025 unless there truly is no other choice.

Need help figuring out what’s what? Apply for a free debt assessment with our certified counsellors and let’s see how we can save you the most in 2025.

Still have questions? Check out our blog post on What is Debt Review? for a deeper dive.