Debt review is a way to help people who are struggling to pay their debts. It is a legal
process that protects you from being harassed by people you owe money to and
helps you pay back what you owe in a way that is easier to manage.
What Is Debt Review?
Debt review (also called debt counselling) is a plan designed to help South Africans
who have too much debt. A debt expert, called a debt counsellor, looks at your
finances and arranges a new plan to help you pay back what you owe in smaller
amounts.
How Does Debt Review Work?
- Check Your Finances – A debt counsellor will look at your income and
expenses to see if you qualify for debt review. - Stop Creditor Harassment – Once you are under debt review, the people
you owe money to cannot take legal action against you. - Change Your Payments – Your debt counsellor talks to your creditors to
lower your interest rates and set up smaller, easier payments. - One Simple Payment – Instead of paying different people, you make just one
payment each month, and it is shared among your creditors. - Become Debt-Free – When you finish paying everything, you get a clearance
certificate, and your credit record is cleared.
Good and Bad Sides of Debt Review
Good Sides:
• No more stress from people calling and demanding money
• A more affordable way to pay your debts
• Interest rates may be lowered
• A clear plan to become debt-free
Bad Sides:
• You cannot take new loans or credit while under debt review
• It can take a few years to pay off everything
• If you stop making payments, you may get into legal trouble
Who Should Consider Debt Review?
Debt review is good for people who:
• Cannot afford their monthly payments
• Are being chased by creditors
• Want a way to clear their debt without legal trouble
• Need help getting their finances back on track
What Happens After Debt Review?
Once you finish paying off your debt, you get a clearance certificate. Your credit
record is updated, and you can apply for credit again if needed. It’s important to
manage your money well so you don’t end up in debt again.