Understanding Debt Review: A Simple Guide for South Africans Battling Debt

If your monthly bills are starting to feel heavier than your paycheck, and you’re struggling just to breathe under the weight of debt – you’re not alone. Many South Africans find themselves over-indebted, and it’s nothing to be ashamed of. What matters is how you choose to deal with it.

This is where Debt Review comes in. It’s a legal process that can help you take control of your finances, protect you from creditors, and give you a real shot at recovery.

What is Debt Review?

Debt Review is a formal debt relief process designed for people who are over-indebted. This just means your expenses and loan payments are more than your income, and you simply can’t keep up anymore.

If that sounds like you, then you might qualify for debt review. But don’t worry – before anything is final, the first step is a quick financial assessment to see where you stand.

Who Qualifies?

Anyone who is over-indebted.
This will be determined through a financial assessment looking at your income, all monthly expenses, and your total debts.
If the assessment shows you can’t meet your financial commitments, you’re officially considered over-indebted.

Why Consider Debt Review?

Stop the constant calls and letters from your creditors.
Pay one affordable monthly amount based on your actual income.
Get legal protection so no one can take legal action against you while you’re under debt review.
Eventually become debt-free with a clean credit slate.

How the Debt Review Process Works

Step 1: Financial Assessment

This is where it all starts. A registered debt counsellor will go through your income, living expenses, and debts. Pretty much taking a full picture of your current financial situation.

They’ll look at:

How much money you make each month.
What your regular expenses are – rent, food, utilities, transport, etc.
How much you owe – credit cards, store accounts, loans, etc.

All this info helps determine whether you really are over-indebted.

Step 2: Are You Over-Indebted?

This part is key. If the assessment finds that your debts outstrip your income (and you're really battling), then you will officially be declared over-indebted.

From there, debt review becomes a real option.

Step 3: Application for Debt Review

Now that we’ve confirmed you need help, we move on to the actual debt review application.

This isn’t a scary legal process – the debt counsellor does most of the work, including contacting your creditors and negotiating better payment terms on your behalf.

You’ll end up with one, more manageable monthly repayment based on what you can afford.

Benefits of Going Under Debt Review

No More Lawsuits & Harassment: Once you’ve applied, creditors are legally blocked from taking legal action or hassling you for payments.
Affordable Repayment Plan: Your new monthly payment is based on what you can genuinely afford after your normal living expenses.
No Blacklisting: You go under debt review instead of being blacklisted. And once you complete it, your credit record can recover.
Financial Peace of Mind: You get breathing room. You can sleep at night knowing you’re on the road to becoming debt-free.

Do People Often Confuse Debt Review With Other Things?

“Isn’t debt review just another word for bankruptcy?”

Nope. Not even close. Bankruptcy is when you legally declare you can’t pay debts at all. Debt review, on the other hand, is a structured repayment plan. You still pay your debts – just in a more affordable and structured way over time.

“Will I never get credit again if I go into debt review?”

Also not true. While you can’t take on new credit while under debt review, once you finish and receive your clearance certificate, you can start borrowing responsibly again. And remember, you’ll be in a much stronger financial position by then.

Final Thoughts

If you find yourself barely staying afloat, but still trying to keep up with bills, debt review could be your lifeline. Take the first step: talk to a registered debt counsellor and find out where you stand.

You deserve peace of mind and a path to becoming debt-free. It all starts with one honest financial check.

If you’re unsure whether debt review is right for you, we’ve written more about how the process works and how it impacts your credit history.

Take control. Start your journey toward financial stability today.