Debt Restruct

Under Debt Review – What Does it Mean?

Man with earphones in his years smiling at his phone while standing on a bridge with the sun rising over the horizon

The reality is that many South Africans are struggling to keep their heads above water and generate enough income to cover their monthly expenses. Drowning in debt, discouraged, and down in the dumps. Sound familiar?

There is hope, a solution to your debt woes, other than the historical debt consolidation loans or a visit to the local loan shark.

In 2007 the National Credit Act (NCA) introduced the debt review process. Debt review is a formal debt rehabilitation programme that seeks to help consumers who are struggling to generate enough income to make ends meet. The debt review process is a more responsible and consumer-centric alternative to settling your debt.



What does it mean to be under debt review?

There is a misconception that debt review is shameful, it is not. Instead, it is a brave and powerful move towards financial freedom.


Under debt review definition

“Under debt review” is defined as being deemed overindebted by an NCR registered debt counsellor and approved for a restructured payment plan to help settle the outstanding debt. The debt review status, indicated on the participant’s credit report, indicates the formal approval for the debt review process while active.

When you are under debt review it means that you are over-indebted and are actively seeking ways to remedy the situation. The debt review process is designed to do exactly that – help you free yourself from debt, support better payment habits that can eventually help improve your credit score, support better payment habits that can eventually help improve your credit score and ultimately attain financial freedom.


Step 1:

Not everyone can qualify for debt review. An online assessment such as this one can help you determine whether you meet the criteria. The assessment is quick and easy and most importantly, confidential.


Step 2:

Now that you are deemed eligible to be under debt review, your journey to financial freedom can start. A debt counsellor will begin by analysing your debt and then negotiate a decreased interest rate on monthly repayments with your creditors.

You pay a monthly, more affordable consolidated amount to the debt review company and they then, based on the negotiations, distribute the funds to your creditors.


Step 3:

Financial freedom. Once your debt review process ends, i.e. you have settled the negotiated amount, you will receive a clearance certificate, as you will now be completely free of debt and you can begin improving your credit rating.


What are some of the benefits of being under debt review?

  • When you are under debt review it means that you are protected from losing your assets or belongings to repossession.
  • You protect yourself from being blacklisted while you are under debt review, ensuring that at the end of the process, your credit rating is intact and you can work on improving it.
  • You pay only one affordable fixed amount every month. This allows you to plan better and even save some money.
  • Less admin with one consolidated payment per month. As the debt review company takes ownership of distributing the one amount to your creditors, you make only one payment.
  • You cannot incur further debt while under debt review keeping you committed to reaching your aim of financial freedom.
  • Complete financial freedom and the peace of mind that comes with it.
Check to see if you qualify to reduce your debt instalment with our quick quiz

What happens if you are under debt review?

Considering debt review as an option to resolving your debt woes is a big step, one you should be proud of. Now that we have discussed the process let’s address how being under debt review can possibly affect other aspects of your life.


1. What happens to your credit access?

As the consumer, you are protected from incurring any further debt while you are under debt review. You have no access to credit during the process.


2. Will your employers know?

It is not necessary to disclose your debt review status to your employer. 

Furthermore, your steps to remedy your financial situation through the debt review process should show that you have taken charge of your debt situation – this is a healthy decision, that most employers could regard as a positive sign.


3. Does it impact renting a property?

No, it does not. The debt review process is not a credit agreement and thus allows you to enter into a property rental agreement.


4. Will it impact travelling or working overseas?

You can still travel and even work overseas while under the debt review process. You will need to ensure that your debt counsellor is aware of your plans and also have solid strategies in place to continue with your monthly repayments to successfully reach the end of your debt review process.

You should not be defined by your debt. It is evident that embarking on this process will not stand in the way of you living your life as before but without the worry of being over-indebted.



Take the first step towards financial freedom today

If you started reading our blog because you were considering the debt review process, by now you should be convinced that it is the solution you need. Stop allowing your debt to get you down. Make the commitment to yourself, take the first steps towards financial freedom today.

Do you know whether you qualify?

Find out if you’re eligible to reduce your debt and protect your belongings.

Disclaimer: This website and any information herein is not intended to be, nor does it constitute, financial, tax, legal, investment, credit, or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified professional directly.

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