Compare debt relief options in South Africa
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Debt review
A regulated plan that restructures qualifying repayments.
Who qualifies
People with an income who cannot, or are likely to become unable to, meet all credit repayments after reasonable living costs. An NCR-registered counsellor confirms this through an assessment, not an online promise.
Protection
Debt review is a National Credit Act process. Legal protection can apply when the process starts before enforcement has gone too far and the required steps and payments are kept. A counsellor must check each account.
Credit impact
The process is recorded on the credit profile while it is underway. After the legal requirements are met, a clearance certificate is issued and bureaux can update the record.
Costs
DRC's first assessment is free. If you proceed, regulated debt-counselling fees apply and should be explained before you sign. There is no honest one-size fee in rands.
Length
There is no single fixed term. Time depends on income, essential expenses, balances, the agreed proposal, and whether payments are maintained. Many plans run for years.
New credit
A consumer under debt review cannot obtain further credit until the process is completed and the applicable clearance requirements are met.
Exit
Keep the agreed payment and work toward a clearance certificate. Clearance confirms the legal requirements were met. It does not wipe the rest of your credit history.
Downsides
It is a formal process that must be finished properly. Interest does not automatically stop. Debt is restructured, not written off. New credit stays closed until clearance.
This comparison is educational. It is not legal, financial, or debt-review advice and not a National Credit Act disclosure. Outcomes depend on your own accounts. Speak to an NCR-registered counsellor before you decide.
Read all five options
Open an option for the full comparison of eligibility, costs, restrictions and completion. Keep the same questions in mind when discussing a proposal.
Debt review
- Who qualifies
- People with an income who cannot, or are likely to become unable to, meet all credit repayments after reasonable living costs. An NCR-registered counsellor confirms this through an assessment, not an online promise.
- Protection
- Debt review is a National Credit Act process. Legal protection can apply when the process starts before enforcement has gone too far and the required steps and payments are kept. A counsellor must check each account.
- Credit impact
- The process is recorded on the credit profile while it is underway. After the legal requirements are met, a clearance certificate is issued and bureaux can update the record.
- Costs
- DRC's first assessment is free. If you proceed, regulated debt-counselling fees apply and should be explained before you sign. There is no honest one-size fee in rands.
- Length
- There is no single fixed term. Time depends on income, essential expenses, balances, the agreed proposal, and whether payments are maintained. Many plans run for years.
- New credit
- A consumer under debt review cannot obtain further credit until the process is completed and the applicable clearance requirements are met.
- Exit
- Keep the agreed payment and work toward a clearance certificate. Clearance confirms the legal requirements were met. It does not wipe the rest of your credit history.
- Downsides
- It is a formal process that must be finished properly. Interest does not automatically stop. Debt is restructured, not written off. New credit stays closed until clearance.
Debt consolidation
- Who qualifies
- People who still qualify for a new credit agreement and can afford that repayment. It is a poor fit if you are already over-indebted and cannot get responsible new credit.
- Protection
- None of the National Credit Act debt-review protections. Consolidation is normally a new loan, not a regulated restructuring process.
- Credit impact
- A new application and a new account. Impact depends on whether you keep the new repayment and whether old accounts are closed or used again.
- Costs
- Interest, fees, and the term of the new loan. A lower monthly instalment can still cost more over the full term. Compare the total cost, not only the new instalment.
- Length
- The term of the new credit agreement. That is set with the lender, not by a debt counsellor.
- New credit
- Consolidation is new credit. Approval depends on affordability and the lender's criteria. It is not available as a workaround if you already cannot borrow responsibly.
- Exit
- Pay off the new loan according to its contract. There is no debt-review clearance certificate.
- Downsides
- You still owe the debt, often for longer. If you keep using the old credit lines, the total can get worse. It does not fix an income that no longer covers repayments.
Administration order
- Who qualifies
- A magistrate's court process for some consumers who cannot pay listed debts as they fall due. Whether it fits is a court decision. It is not the same as National Credit Act debt review.
- Protection
- Debts included in the order are generally collected through the court-appointed administrator while the order stands. Other debts and enforcement already under way may sit outside it. Get advice on your own accounts.
- Credit impact
- Administration is typically recorded on the credit profile while the order is in force.
- Costs
- Administrator and court-related costs apply. Ask for a written explanation of those costs before you apply. This page does not quote a rand amount.
- Length
- Until the listed debts are paid under the order, or the court changes or sets the order aside. There is no single public timetable.
- New credit
- Further credit while under administration is generally restricted. Confirm the exact position with a legal adviser. This page does not treat that as an NCA debt-review rule.
- Exit
- Pay the listed debts under the order, or apply to the court to vary or rescind it.
- Downsides
- It is a court process with costs and a credit listing. It does not automatically cover every debt. It is not a substitute for a counsellor or attorney looking at your papers.
Sequestration
- Who qualifies
- A High Court insolvency process, typically considered when a person cannot pay debts and liabilities exceed assets. The court decides. It is not an online qualification checklist.
- Protection
- Once an order is granted, creditors generally claim against the insolvent estate through the trustee rather than pursuing those estate debts separately. Timing and exceptions need legal advice.
- Credit impact
- Severe. Insolvency is recorded and makes future credit much harder for a long time.
- Costs
- Legal costs and trustee costs are paid from the estate where the law allows. They can be substantial. This page does not quote a figure.
- Length
- The estate is wound up through the insolvency process. Rehabilitation is a later, separate legal step. There is no single advertised number of years on this page.
- New credit
- New credit is generally not available during sequestration. After rehabilitation a credit provider still makes its own decision.
- Exit
- Rehabilitation through the legal process, or as the court allows. This is not the same as a debt-review clearance certificate.
- Downsides
- Assets in the estate can be sold. The credit damage is long-term. Costs are high. It is not a fit for most people who still have income and can restructure repayments.
Informal arrangement
- Who qualifies
- Short-term pressure where you can still deal with creditors without a court order or National Credit Act debt review. Often used when you are not over-indebted but need a temporary rearrangement.
- Protection
- No statutory debt-review shield. Protection is only what each creditor agrees in writing. A creditor can refuse.
- Credit impact
- Depends on whether you keep the rearranged payments and whether any account is listed as in arrears or as an arrangement.
- Costs
- Usually no court or statutory counselling process. You still pay the debts. Interest and fees can continue unless a creditor agrees otherwise.
- Length
- As agreed with each creditor. Many arrangements are short-term, then original contract terms return.
- New credit
- Not automatically blocked by a debt-review or court process. Missed payments, listings, or over-indebtedness can still stop a new application.
- Exit
- Return to the original terms, settle the accounts, or move into a formal process if the arrangement is not enough.
- Downsides
- Creditors can say no. There is no NCA legal protection. It is a weak plan if you are already over-indebted or in collections.
How to use this guide
Five different routes
Debt review is NCA debt counselling. Consolidation is usually a new loan. Administration and sequestration are court processes. An informal arrangement depends on each creditor.
Eight practical questions
Open the icon rows to check who may qualify, protection, credit impact, costs, length, new credit, exit, and downsides.
Your next step
Use WhatsApp or the contact page to discuss your accounts with a counsellor. This guide does not make the decision for you.
Common questions
Is this comparison legal advice?
No. The guide is educational. It is not legal, financial, or debt-review advice and not a National Credit Act disclosure. Speak to an NCR-registered counsellor or a legal adviser about your own accounts.
Is debt review the same as debt consolidation?
No. Consolidation is normally a new loan. Debt review restructures qualifying existing credit through a regulated process and does not require a new loan.
Can I take new credit under debt review?
No. A consumer under debt review cannot obtain further credit until the process is completed and the applicable clearance requirements are met.
What is an informal arrangement?
An informal arrangement is a repayment agreement you try to make with creditors without a court administration order, sequestration, or National Credit Act debt review. It only lasts as long as each creditor agrees.