Struggling to keep up with your debt repayments? Here’s how debt review works — and who it may suit.

Does this sound familiar?

• Month-end arrives and the money is gone before payday.
• Petrol, taxi fare and groceries keep going up, and then it’s school fees and uniforms again.
• You’re juggling store cards, a credit card and a personal loan or two.
• You’ve started using one account to pay another.
• The calls and SMSes from collectors have become a daily thing.

If so, you’re not alone — and there are formal options worth understanding.

What debt review is

Debt review (also called debt counselling) is a formal process under the National Credit Act. A registered debt counsellor looks at your income, expenses and debts, works out a budget you can live on, and proposes reduced monthly repayments to your creditors.

Once agreed and made an order of court, you make one monthly payment, which a registered Payment Distribution Agency (PDA) pays out to your creditors.

What debt review is not

• It is not a loan and won’t give you money.
• It doesn’t make your debt disappear: you still repay what you owe, often over a longer period, which can mean paying more interest overall.
• You can’t take on new credit while under review.
• It isn’t instant: how long it takes differs from person to person.

Who it may suit

Debt review is designed for people with a regular income who are over-indebted across several accounts and are falling behind or struggling to keep up.

It’s usually people with a monthly income before deductions (gross) of R10 000 or more and total debt of more than R30 000, including a home loan.

If you can still catch up by talking to your creditors directly, that’s often worth trying first.

About DebtSafe

Debtsafe (Pty) Ltd is a debt counsellor registered with the National Credit Regulator (NCRDC1078) and has been operating since 2009.

DebtSafe says it has helped more than 50 000 South Africans with their debt.

How the process works with DebtSafe

1. 1Free, no-obligation assessment of your budget and debts.
2. 2A personalised budget and proposed repayment plan.
3. 3DebtSafe negotiates reduced repayments with your creditors.
4. 4The plan is made an order of court so creditors follow the agreed plan.
5. 5One monthly payment, distributed by a PDA.
6. 6When all your debts under the plan are paid, you receive a clearance certificate.

What does it cost?

Debt review fees are set by the National Credit Regulator. DebtSafe says there are no up-front fees: its fees are included in your restructured monthly repayment.

Your counsellor should explain every fee before you agree to anything.

Before you start

• You can’t take new credit during the process.
• It usually takes years, not months.
• Your credit profile shows you’re under debt review until you finish.
• You must keep up the new payments.

Common questions