10.5 million South Africans are behind on debt. How debt review works

More than a third of South Africans with credit are behind on their accounts. The National Credit Regulator's Credit Bureau Monitor for the quarter ended June 2025 counted 29.24 million credit-active consumers, and 10.54 million of them (36.05%) had impaired records. That means they were three months or more in arrears, had an adverse listing, or had a judgment or administration order against them.

Debt review, also called debt counselling, is the relief route the National Credit Act gives over-indebted consumers. It does not cancel what you owe. It lowers your monthly instalments by restructuring your debts, which usually stretches the repayment period (NCR, NCR guide).

What does debt review actually do?

A debt counsellor registered with the NCR compares your income with your basic living expenses and debt repayments. If you're found to be over-indebted, they negotiate reduced payments with your credit providers. The new plan then has to be confirmed by a magistrate's court or the National Consumer Tribunal through a court order or consent order (NCR).

The application, negotiation and referral to court or the tribunal must be finished within 60 business days of applying. During that period credit providers can't take legal action against you, such as repossessing assets or getting a default judgment (NCR).

Who can apply for debt review?

• You must have an income (NCR guide).
• You can't apply while you're under debt administration (NCR guide).
• If you're married in community of property, you and your spouse must apply together (NCR).

You apply voluntarily by completing Form 16 with a registered counsellor. Within five business days of accepting your application, the counsellor must notify your credit providers and the credit bureaus (NCR).

Will debt review blacklist me?

No. The credit bureaus add a debt counselling flag to your profile. The NCR says this is not a negative listing, only a marker that you're under debt review. The trade-off is that you can't take out new credit while the flag is on your record (NCR).

What does debt review cost?

It isn't free. Your counsellor must explain the process and give you every fee in writing before you sign, and the NCR publishes fee guidelines for counsellors. The regulator also says you don't have to borrow money to pay the fees (NCR).

Smaller instalments mean the debt takes longer to pay off than it would have on the original terms (NCR guide).

Do I still pay my debts during the process?

Yes. There is no payment holiday. From the start you pay the amount your counsellor sets, either straight to your creditors or through a payment distribution agent registered with the NCR. If you miss payments, a credit provider can end your debt review and take legal steps (NCR).

How do I get out of debt review?

You exit with a clearance certificate from your counsellor. It's issued once you've paid every debt in the restructuring order, or once all short-term debts (personal loans, store accounts, credit cards) are settled and only a home loan remains, with its payments up to date (NCR, NCR brochure).

The counsellor then tells the credit bureaus to remove the flag and delete the information about the debts that were under review (NCR).

How do I check that a debt counsellor is registered?

Ask to see their NCR registration certificate, which they should display at their office. You can confirm registration on the NCR website or by calling the NCR call centre on 0860 627 627. Complaints go to [email protected] (NCR, NCR guide).