Navigating Debt Review: Your Step-by-Step Guide to Financial Relief in South Africa

If you're feeling anxious about your financial situation, you're definitely not alone. Many South Africans are struggling to make ends meet, and sometimes it gets so overwhelming that we don’t know where to turn.

That’s where debt review comes in—it can truly be the help you’ve been looking for. But let’s be clear: not all advice out there is good advice, and that’s why getting multiple opinions and working with a certified debt counsellor is so important.

What is Debt Review?

Debt review is a formal process in South Africa designed to help individuals who are overwhelmed by debt. It’s aimed at protecting you from creditors while giving you a structured plan to pay off what you owe—without losing your assets or sanity.

Who should consider applying?

You might want to think about debt review if:

• Your monthly debts exceed your income
• You find yourself skipping payments or using credit to pay other credit
• You're constantly stressed about money and creditors constantly harass you

The Importance of Multiple Opinions

Before diving in, it’s wise to seek more than one opinion about your financial status. Having options and clear guidance helps you make better long-term choices for you and your family.

Step-by-Step Debt Review Process

1. Financial Assessment

The first thing we do is a personal financial assessment. We look at your income and expenses and how your debts with creditors tie into it all. This gives us a good idea of how deep your debt goes.

This assessment isn’t free—the cost is usually R300 for the assessment itself and an additional R50 for the credit report authorization. Doing this doesn’t pull you into debt review just yet; it’s just to figure out whether you're over-indebted and what your options are.

2. Determining If You’re Over-Indebted

If the assessment shows that you’re over-indebted, we’ll recommend debt review. Still, it’s important to note that you’re not locked in immediately—you can withdraw up to this point.

3. Application Phase

• Form 16: This is your official application for debt review—a summary of your financial assessment.
• Form 17.1: Once we’ve processed your Form 16, we send this notice to your credit providers to inform them that you’ve applied. We also start gathering certificates of balance from them, which basically sum up what you owe, your instalments, interest, and all the nitty-gritty.

4. Confirming Over-Indebtedness

After receiving all the necessary info from your credit providers, we conduct a final calculation. If you are officially over-indebted based on this data, only then will we proceed with structuring your repayment.

Debt Restructuring and Negotiation

5. Drafting the Proposal

Next, your debt counsellor prepares a restructuring proposal to send to all your creditors. This proposal outlines:

• The outstanding balances
• Adjusted interest rates
• Revised instalments
• Proposed new repayment period

6. Negotiation Phase

We give creditors about 10 working days to respond. Most of the time we reach an agreement, but when we hit a wall with one or more creditors, we escalate the matter to the magistrate’s court.

Don’t worry—you don’t have to be there. The debt counsellor handles this part for you, along with the credit providers.

7. Court Agreement

Once the court signs off on a debt re-arrangement order, it becomes official—and then your structured repayments begin.

Maintaining and Exiting Debt Review

8. Paying Through a PDA

All your future payments go through a Payment Distribution Agent (PDA). It's crucial you don’t pay creditors directly—let the PDA handle that to keep everything transparent and traceable.

9. Annual Review

Every year, your counsellor will review your financial situation. Depending on how things go, they might suggest:

• Reducing monthly instalments if your income drops
• Increasing payments if you're earning more (which can help you finish faster!)

10. You're Almost There! Exiting the Process

Once you’ve fully paid off your restructured debts, we’ll confirm this with all your creditors. After that:

• A clearance certificate is issued
• You'll officially be debt free under the process
• You can even start applying for credit again (rehabilitation isn’t always necessary)

Final Thoughts

Debt review is not a quick fix, but it’s a reliable and protective way to take control of your finances. The process gives you structure and peace of mind—and most importantly, a way forward.

Whether you’re already overwhelmed or just starting to fall behind, our team at Debt Review Centre is here to help. Get in touch for your personalised assessment and let’s start your journey to financial freedom.

Want to know more? We've covered some more details in our 'What Happens After Debt Review?' guide.

We also recommend reading 5 Signs You Might Need Debt Review if you’re not sure whether it’s the right move yet.