Debt review is a formal debt relief process introduced under South Africa’s National Credit Act (NCA). It is designed to assist consumers whose income is no longer sufficient to meet their monthly debt obligations.
The process allows qualifying individuals to:
Debt review does not eliminate debt. Instead, it reorganises repayment terms so consumers can regain financial stability without defaulting further. Learn more about our debt review solutions.
Under the National Credit Act, a consumer is considered over-indebted when their available income is not enough to cover:
This assessment must be conducted by an NCR-registered debt counsellor. The evaluation reviews income, expenses, and all outstanding debts to determine whether debt review is appropriate.
Many consumers become over-indebted due to rising costs, reduced income, unexpected expenses, or increased interest rates — not financial irresponsibility.
Understanding the debt review process can remove uncertainty. Below is how the legal framework works.
A consumer applies for debt review through an NCR-registered debt counsellor. Financial details — including income, expenses, and outstanding debts — are submitted for review.
Form 16 confirms that the application has been received and that a formal assessment is underway.
The debt counsellor conducts a detailed affordability assessment.
If the consumer is found to be over-indebted, Form 17.1 is issued to credit providers, formally notifying them that the consumer is under debt review.
A revised repayment proposal is drafted based on what the consumer can reasonably afford after essential living expenses are considered.
The repayment proposal is submitted to the Magistrate’s Court. Once approved, it becomes legally binding.
This court order provides the legal protection associated with debt review.
The consumer makes one consolidated monthly payment to a registered Payment Distribution Agency. The PDA distributes payments to credit providers according to the court-approved plan.
Once all debts included in the review are fully repaid, a clearance certificate is issued. Credit bureaus are instructed to update the consumer’s record to reflect successful completion.
