If you’re struggling with debt, chances are you’ve heard of debt review (also called debt counselling). But you’ve probably also heard the scary stories: “It’s a scam,” “You’ll be stuck forever” or “You’ll lose everything.”
The truth? All of these are myths. They stop people from getting real help at the exact moment they need it most. Below is a breakdown of the most common myths so you can make informed decisions with confidence.
Myth 1: Debt Review Is a Scam
Some people worry that debt review is just another scam designed to take their money. The truth is the opposite: debt review is a formal legal process, introduced through the National Credit Act (NCA) in 2007, specifically to protect South Africans who are over-indebted.
When you enter debt review:
- A registered debt counsellor works with your creditors to lower your monthly installments.
- You make one affordable payment each month.
- You are protected by law from repossession or court action (as long as you stick to the plan).
Unlike scams, debt review is regulated, transparent and overseen by the National Credit Regulator (NCR). It exists to protect consumers from spiralling debt and aggressive collections, giving you a real chance to recover financially.
If someone asks for upfront fees or makes promises that sound too good to be true, that’s the scam, not debt review itself. Always check that your debt counsellor is registered with the NCR before you commit.
Myth 2: Once You’re In, You’re Trapped Forever
One of the biggest fears people have is that entering debt review means you’ll never get out. The reality is very different: debt review is a structured path to freedom, not a life sentence.
If you remain over-indebted without taking action, the stress, financial pressure and damaged credit profile can follow you for years, even decades. It can feel like you’re stuck in a cycle with no way out.
But with debt review, you have a clear end point. Once you’ve paid off your restructured debts, you receive a clearance certificate, which notifies the credit bureaus that you are officially debt free. Your credit profile is updated and you can rebuild your financial future. Most people complete the process in just 3–5 years, depending on their level of debt and repayment plan.
Compare that to being stuck in a downward spiral indefinitely, debt review offers hope, certainty and a fresh start.
Myth 3: Debt Counsellors Take Your Money & Don’t Pay Creditors
This is one of the most harmful myths about debt review. The reality is that your debt counsellor never touches your monthly repayments.
When you’re under debt review, all payments are made through an NCR-approved Payment Distribution Agency (PDA). They are independent, highly regulated and their sole responsibility is to collect your payment each month and distribute it directly to your creditors.
This system was designed by law to protect you:
- Your money is secure and traceable at every step.
- Payments are allocated according to your restructured plan.
- Creditors receive what they are owed, giving you peace of mind.
The truth: debt review ensures your money is safe and used for exactly what it’s meant for paying off your debts and moving you closer to financial freedom.
Myth 4: You Can Use Affidavits or Shortcuts Instead
Some people believe they can write an affidavit stating they cannot afford to pay their debts and that this will shield them from legal action. Unfortunately, this is a dangerous misconception.
An affidavit on its own carries no legal protection against creditors. Creditors are still fully within their rights to:
- Take you to court for unpaid debts.
- Repossess assets such as vehicles or furniture.
- Add interest and extra fees, making your debt situation even worse.
The only way to receive legal protection from creditors is through a regulated process, such as debt review under the National Credit Act. Once you’re under debt review, your creditors are legally bound to stop legal action and collections, giving you the breathing room you need to repay your debt in a structured, affordable way.
Don’t Let Myths Hold You Back
Debt review is not to shame you, it’s to equip you to take back control. Too many South Africans suffer in silence, scared off by myths that aren’t true.
If you’re over-indebted, remember this:
- Debt review is legal and regulated.
- You are protected from creditors.
- You can become debt free.
Still unsure? WhatsApp us on 010 288 1892 to ask your questions directly.
Your financial future is worth protecting and you don’t have to face it alone.