Is Debt Review Right for You? A Complete Guide to Eligibility and Commitment

If you're struggling to keep up with debt payments, constantly dodging creditor calls, or just feeling the weight of too much debt on your shoulders, you may have heard about Debt Review. But before diving in, it's super important to first ask yourself: is this the right thing for me?

Debt Review is a legal process in South Africa designed to help consumers who are over-indebted. It restructures your debt to make repayments more manageable. But it’s not a quick fix – it takes real commitment, and not everyone qualifies. Let’s break it down together in simple terms.

First Step: Check If You're Over-Indebted

So how do you know if you're really over-indebted? Look out for these tell-tale signs:

• Constant calls or SMSes from creditors demanding payment or threatening legal action
• Skipping monthly repayments or only paying some of your debts, not all
• Feeling overwhelmed or anxious whenever you think about your bills

If that sounds familiar, then it might be time to look into Debt Review.

Keep in mind, it's best suited for people with at least R40,000 in unsecured debt like credit cards, personal loans, and store accounts. This helps ensure the cost of the Debt Review process is worth the relief you’ll get from it.

Understand What “Unsecured Debt” Means

For clarity: Unsecured debt is money you owe that’s NOT backed by collateral. That means if you don’t pay, the lender can’t just take something you own (like a house or a car). This could include—

• Credit cards
• Personal loans
• Store credit accounts

If you have mostly secured debts (like a vehicle finance agreement or a bond), Debt Review might not suit your needs.

Don't Jump In Until You Explore All Options

One of the biggest mistakes people make is thinking Debt Review is the only solution. It’s not. You need to talk to a reputable and registered Debt Counsellor—one that will take time to explain the pros, cons, and other options instead of pushing you straight into review.

Some alternatives to think about:

• Debt consolidation – combining your debts into one loan with a lower interest rate
• Negotiating with creditors – sometimes they'll agree to lower instalments or interest
• Budget counselling – learning how to stretch your income better and cut down on expenses

Debt Review should only be considered once you’ve looked at all these and feel it’s the right choice.

The Big Question: Are You Ready to Commit?

Going under Debt Review isn’t like changing your phone contract. It’s a serious legal process—and one that takes time. There’s no hard timeframe, but in most cases, it doesn’t get sorted out in just 3 or 6 months. It can take a few years to complete depending on how much money you owe.

Here's what you need to know before you commit:

• You’ll have to make regular monthly payments according to your new Debt Review agreement
• Missing payments can get you kicked out of the process and leave you worse off
• Debt Review protects you from legal action by creditors – but only while you’re complying

If you go into the process without real commitment—or worse, plan to beat the system just to dodge payments—you’ll just be adding more fees and stress to an already tight situation.

What Will It Cost You?

People often ask: “Is there a big fee?” And yes, there are fees. A Debt Counsellor provides a professional service—and part of that is putting together a repayment plan and negotiating with all your creditors.

Generally, the initial and monthly fees are set according to industry guidelines and are included in your new consolidated repayment plan. That means you won’t need to cough up cash separately—but it’s still important to know that these fees exist and make sure they make financial sense for you.

Main Benefits of Debt Review (If You’re a Suitable Candidate)

• Lower monthly repayments which fit into your actual income level
• Legal protection from creditors while you’re under review
• Freedom from the constant stress and harassment of non-stop phone calls
• A clear path to becoming debt-free over time

So, Are You Eligible and Ready?

Here’s a quick checklist to see if Debt Review might be for you:

• Are you struggling to pay your creditors?
• Do you have more than R40,000 in unsecured debt?
• Are you getting scary calls and messages from creditors?
• Is financial stress affecting your health or peace of mind?
• Most importantly – are you committed to seeing the process through?

If you said yes to most of the above, then it may be time to speak to the professionals.

Let’s Talk Next Steps

The process doesn’t start with paperwork. It starts with advice. At Debt Review Centre, we offer free initial assessments so you can understand all your options—Debt Review or not.

Need help deciding? Contact us today to speak to a certified Debt Counsellor who will explain how Debt Review works without pressure. We'll guide you every step of the way.

Click here to book your free debt assessment

Helpful Reads

• What is Debt Review and How Does It Work?
• Debt Review Process Unpacked
• Debt Review vs. Debt Consolidation: What’s Better?