Debt Review - Frequently Asked Questions

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Below you will find an in-depth debt review FAQ section. Please contact us at 087 898 0895 if you are unable to find the answer to your question.

Entering debt review in South Africa is a significant decision for individuals facing financial difficulties. It offers various benefits but also comes with some potential drawbacks. Here's a comprehensive overview:


  1. Protection from Creditors: Once you are under debt review, your debt counsellor notifies all your creditors, and legal action to collect debts or repossess assets is put on hold. This protection allows you to focus on repaying your debts without the constant threat of legal proceedings.

  2. Affordability: Debt counsellors assess your financial situation and create a restructured payment plan based on what you can afford. This plan ensures that you can meet your monthly obligations while still covering essential living expenses.

  3. Interest Rate Reduction: Often, debt counsellors can negotiate lower interest rates on your outstanding debts, making it easier to pay off what you owe and reducing the total amount payable over time.

  4. Consolidation of Payments: Instead of dealing with multiple creditors, you make a single, consolidated payment to a Payment Distribution Agency (PDA), which then distributes the funds to your creditors. This simplifies the repayment process.

  5. Financial Rehabilitation: This process helps consumers manage their finances better and avoid future debt problems. Debt counsellors provide guidance and support to help you develop healthier financial habits.

  6. No Blacklisting: Being under debt counselling does not result in blacklisting. Instead, your credit record reflects that you are under debt counselling, which is seen as a positive step towards managing your debt responsibly.

  7. Clear Exit Plan: Upon successful completion of the process, you receive a clearance certificate, indicating that you have settled all your restructured debts. This allows you to rebuild your credit record.

Potential Drawbacks

  1. Credit Restrictions: While under debt counselling, you cannot obtain new credit. This restriction ensures that you focus on repaying your existing debts but can be challenging if you need to make unexpected expenses.

  2. Extended Repayment Period: While the monthly payments are more manageable, the total repayment period may be extended, meaning it might take longer to become debt-free.

  3. Impact on Credit Score: Initially, entering this process can negatively impact your credit score. However, as you make consistent payments, your creditworthiness gradually improves.

  4. Fees and Costs: Debt counselling services come with fees, including an initial application fee and monthly after-care fees. While these are regulated by the National Credit Regulator (NCR), they can add to your monthly expenses.

  5. Lifestyle Adjustments: Being under debt review requires significant lifestyle changes and disciplined budgeting. You may need to cut back on non-essential spending and stick to a strict financial plan.

  6. Potential Mismanagement: Choosing a reputable and registered debt counsellor is crucial. There are risks of mismanagement or fraud if you work with unqualified or unscrupulous practitioners. We are registered and have been so for the past 10 years. Contact us today for your debt management requirements.

  7. Commitment Required: This process is a long-term commitment. It requires dedication and consistency to follow through with the repayment plan until all debts are settled.


Debt Counselling offers a structured and legally protected way to manage and repay debts, providing relief from creditor pressure and a path to financial rehabilitation. However, it also requires a willingness to make lifestyle changes and a commitment to a long-term repayment plan. Understanding both the benefits and potential drawbacks can help you make an informed decision about whether the process is the right solution for your financial situation.

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