Who qualifies for debt review in South Africa?

Debt review may be appropriate when you cannot meet your credit commitments while covering reasonable living expenses, but you still have income available for a repayment plan. A registered debt counsellor must assess your circumstances. A calculator or a debt balance alone cannot decide whether you qualify.

Signs that an assessment could help

• You regularly use credit for groceries, transport or other essentials.
• Minimum payments leave too little for necessary living costs.
• You borrow from one account to pay another.
• You have missed instalments or expect to miss them soon.

These are reasons to get advice, not proof of legal over-indebtedness. An assessment needs the full picture of your income, expenses, accounts and legal position.

What a counsellor needs to check

Start with take-home household income and essential living costs. Then list each credit agreement, current balance, instalment and arrears. Include home and vehicle finance separately from rent and transport expenses so the same cost is not counted twice.

For example, R20,000 income less R12,000 living costs leaves R8,000 before debt. If instalments total R9,500, there is a R1,500 budget gap. That arithmetic explains the problem. It does not establish what creditors will accept or include debt counselling fees.

Bring proof of income, recent statements and any collection letters or court papers to the assessment. The preparation checklist helps you organise the conversation without submitting personal details.

Situations that need individual advice

• No income available for repayments: a workable debt review plan may not be possible at present. Ask what other support or arrangements can address the immediate problem.
• Variable income: show the pattern over several months, not only your best month.
• Marriage in community of property: the NCR explains that spouses need to apply jointly.
• An existing administration order or debt review arrangement: tell the counsellor before starting another process.
• Legal action: give the adviser the notice and its dates promptly. Do not assume an enquiry stops enforcement or that every account can still be included.

What you commit to

Formal debt review affects access to new credit. It also requires you to follow the payment arrangement, communicate changes in income and understand the conditions for completing or leaving the process. It is not a new loan, debt cancellation or a guarantee that your assets are protected in every circumstance.

Read the fee guide and ask for the proposed term and total cost. A reduced monthly payment may mean a longer repayment period. Report a payment problem promptly rather than silently missing an instalment.

Your next step

Compare the debt review process with the alternatives discussed in your assessment. You can check your budget first or speak to DRC's registered debt counsellors. Asking a question or viewing the calculator is not a formal application.

Source

Read the NCR's considerations before entering debt counselling. This guide provides general information; your assessment must address your own accounts and circumstances.

Try a simple statement check before the assessment

Mark necessary living costs, required debt payments and optional spending separately on a recent statement. Compare the total with your take-home income. The household affordability tool can help you organise the figures. Include irregular expenses too. A positive or negative result is a starting point for discussion, not a legal determination of eligibility.