Transparent & Objective Evaluation
What Are the Pros and Cons of Debt Review?
The primary pros of debt review are significantly reduced monthly repayments, protection against creditor legal action and vehicle repossession, potentially lower negotiated interest rates, and a statutory route to a clean credit record via a Form 19 clearance certificate. The primary cons are that consumers cannot obtain new credit facilities while under review, the restructuring takes several years to complete, and agreed monthly instalments must be maintained consistently without default.
Reviewed by Carolina Guevara Harris (NCRDC3152)•Updated for 2025
The Advantages (Pros)
- ✓Single Monthly Payment: All accounts consolidated into one structured monthly distribution via an NCR-accredited PDA.
- ✓Statutory Asset Protection: Creditors cannot independently issue summons, obtain judgment, or repossess cars and homes included in the review.
- ✓Reduced Interest Rates: Creditors routinely agree to reduced concessionary interest rates under DCRS rules, lowering total repayment costs.
- ✓No More Harassment: Debt collectors and bank recovery teams must direct all communications to your debt counsellor.
- ✓Clean Record Upon Completion: Once settled, credit bureaux are legally bound to purge the debt review flag within 21 days.
Important Considerations (Cons)
- ×No New Credit Allowed: Under Section 88 of the NCA, credit bureaux reflect an active debt review flag and no lender may extend new loans or cards.
- ×Extended Repayment Horizon: Reducing monthly instalments usually extends the overall term of your loans by several years.
- ×Strict Payment Discipline: Missing a single monthly payment can cause credit providers to issue Section 86(10) termination notices.
- ×Cannot Voluntarily Cancel Mid-Process: Under court precedent, once a debt counsellor declares over-indebtedness, only a court or Form 19 clearance can terminate the process.
Why Balance and Transparency Matter
At Debt Guidance, we believe that debt review should never be sold as a quick fix or an easy escape. It is a serious, court-sanctioned rehabilitation programme. For consumers genuinely struggling with unaffordable debt, it is often the single most powerful tool in South African law to prevent bankruptcy, protect family assets, and exit the debt spiral.
However, entering debt review without understanding the restrictions—such as the prohibition on new borrowing—can cause frustration. That is why our registered debt counsellor, Carolina Guevara Harris, personally reviews each case to ensure you have complete clarity before taking any formal steps.
Free & Confidential
Get Balanced Advice
Evaluate whether the pros outweigh the cons for your unique budget