Debt Review Explained: How It Works, What It Costs and How to Get Out (2026)

By Finance Guide Editors Updated October 2026 · 5 sources · 4 min read

Prices and facts checked 16 October 2026. We don't accept payment for rankings.

Short answer: debt review is a legal process under section 86 of the National Credit Act. An NCR-registered debt counsellor assesses whether you're over-indebted and negotiates lower repayments with your creditors, usually confirmed by a court order. While you're under review, creditors can't take legal action on those debts as long as you keep paying. But you can't take on new credit until the process ends with a clearance certificate (National Credit Act).

Is debt review right for you?

Debt review is meant for people who are over-indebted: you can't keep up with all your credit repayments from your income after reasonable living expenses. The NCR describes getting help when you're over-indebted as one of your rights as a credit consumer (NCR consumer rights).

Timing matters. Under section 86(2), you can't put a specific agreement under debt review if that credit provider has already started enforcement steps under section 129 (National Credit Act).

How the process works

These steps follow the National Credit Act and its regulations, as set out by OurPower's debt review guide (last verified August 2026):

1. Apply (Form 16). You apply to a registered debt counsellor and may pay an application fee. The Act says it can't exceed the prescribed amount (s86(3)).
2. Credit providers and bureaus are notified (Form 17.1). This happens within 5 business days. From this point you're flagged as being under debt review.
3. Assessment. Within 30 business days, the counsellor decides whether you're over-indebted, using your income and reasonable living expenses (s86(6)).
4. Proposal. If you're over-indebted, the counsellor proposes lower payments, longer terms or both, and sends them to your creditors (Form 17.2).
5. Court order. If everyone agrees, the agreement is made a consent order. If not, the matter goes to the Magistrate's Court (s86(8)).
6. You make one monthly payment, usually through a payment distribution agent, which pays your creditors.
7. Clearance. When you've paid off all the debts in the arrangement, the counsellor issues a clearance certificate. The credit bureaus must then remove the debt review record (s71).

The rules while you're under debt review

Under section 88 of the National Credit Act:

• No new credit. Once you've applied, you may not incur further charges on a credit facility or enter into new credit agreements (other than a consolidation agreement) until the review ends.
• Protection from enforcement. Creditors can't enforce the restructured debts while you keep to the arrangement.
• Miss payments and you lose protection. If you default on the arrangement, creditors can take legal action again.

Costs

The Act allows a debt counsellor to charge an application fee, not exceeding the prescribed amount. They may not accept a fee from a credit provider for your application (s86(3)). Other fees, such as restructuring, legal and monthly aftercare fees, follow NCR guidelines and are built into your monthly payment. Ask for a written breakdown of every fee before you sign. Fee levels have been revised over the years, so compare counsellors.

How to get out of debt review

• Finish the plan. Once you've paid all the debts in the arrangement, you're entitled to a clearance certificate, and the bureaus must remove the flag (s71).
• Before a court order: you may be able to withdraw, but ask your counsellor about the consequences first.
• Avoid "debt review removal" scams. Be very careful of companies promising to remove debt review quickly for an upfront fee. If you're unhappy with your counsellor, you can complain to the NCR, or to the National Financial Ombud for disputes with credit providers (NFO).

Alternatives to try first

1. Talk to your creditors about a payment arrangement before you miss payments.
2. Check your credit report to see exactly what you owe. It's free once a year (NCR). See our free credit report guide.
3. Cut costs. Bank fees are a quick win. See the cheapest bank accounts.
4. Avoid using two-pot withdrawals to pay debt without doing the maths. Tax and fees take a big share. Use our two-pot tax calculator.

FAQ

How long does debt review take?

It depends on how much you owe and what you can afford. The process lasts until every debt in the arrangement is paid off, which is often several years.

Can I get a loan while under debt review?

No. Section 88 of the National Credit Act says you may not enter into new credit agreements, other than a consolidation agreement, until the review ends.

Will debt review stop my car from being repossessed?

Debt review protects debts included in the arrangement while you keep paying. It can't include an agreement where the credit provider had already started enforcement before you applied.

How do I get the debt review flag removed?

Pay off all the debts in the arrangement. Your counsellor then issues a clearance certificate, and the credit bureaus must remove the record.

How do I check if a debt counsellor is registered?

Search the NCR's register of debt counsellors on ncr.org.za or call 0860 627 627.

Changelog: 16 Oct 2026, first published.