Debt Review in South Africa: How It Works
Struggling to Keep Up With Your Debt?
A confidential financial assessment can help determine whether debt review may be appropriate for you.
Why Was Debt Review Created in South Africa?
Prior to the implementation of the National Credit Act in 2007, South African consumers who fell behind on repayments faced severe and often predatory recovery tactics. Creditors could quickly attach salaries with administration orders or emolument attachment orders (garnishees), seize essential household items, or foreclose on vehicles and family homes with minimal mediation.
The South African Parliament introduced debt counselling to balance the scales: protecting over-indebted consumers from reckless lending and aggressive litigation, while simultaneously ensuring that credit providers recover their capital over an extended, sustainable period.
Who Was Debt Review Designed For?
Debt review is specifically tailored for consumers who are over-indebted. According to Section 79 of the National Credit Act, a consumer is over-indebted when the preponderance of available information indicates that their regular net income is insufficient to satisfy in a timely manner all obligations under all existing credit agreements.
Debt review is appropriate for:
- Consumers currently employed or self-employed with a regular monthly income.
- Individuals whose monthly contractual repayments exceed their disposable income.
- Borrowers falling behind on vehicle finance, home loans, credit cards, or personal loans.
- Consumers facing constant calls from debt collection agencies and demand letters.
Which Debts Can Be Included in Debt Review?
Debt review covers agreements that fall under the statutory jurisdiction of the National Credit Act. These include:
- • Credit cards & revolving credit facilities
- • Bank personal loans & overdrafts
- • Vehicle asset finance agreements
- • Residential home loans (mortgages)
- • Retail clothing and store accounts
- • SARS tax liabilities (must be resolved with SARS directly)
- • Outstanding municipal rates & utilities
- • Child maintenance orders
- • Accounts where legal summons has already been served
- • TV licenses & school fees
How Debt Review Ends: The Form 19 Clearance Certificate
Debt review is not a permanent status. Once you have settled all restructured unsecured debts and vehicle finance agreements according to the court order, your debt counsellor conducts an audit of paid-up letters and issues an official Form 19 Clearance Certificate under Section 71.
This certificate is sent directly to the National Credit Regulator and all registered South African credit bureaux (including TransUnion, Experian, XDS, and VeriCred). By law, credit bureaux must completely remove the debt review indicator within 21 business days, allowing you to re-enter the credit market with a clean slate.
Frequently Asked Legal Questions
Can credit providers still sue me?
Once you apply and are placed under debt review, credit providers listed in the process cannot institute legal proceedings or enforce agreements, provided your payments through the PDA are maintained.
Will my employer know I am under debt review?
No. Debt review is a confidential personal legal process. Your debt counsellor does not contact your employer, and there are no payroll garnishee orders attached to your salary.
Check Your Eligibility
Confidential review by Carolina Guevara Harris (NCRDC3152)
Debt Guidance operates strictly under NCR regulations.
Counsellor: Carolina Guevara Harris
NCR Registration: NCRDC3152
Practice Established: 2015
Clearance Certificates: 1,000+ Achieved