Debt review, also known as debt counseling, is a process available to consumers in South Africa who are struggling to repay their debts. The process is governed by the National Credit Act (NCA) and is intended to help over-indebted consumers by providing them with a structured payment plan that is affordable and sustainable.
The debt review process begins when a consumer contacts a debt counselor, who will then assess the consumer’s financial situation and determine whether they qualify for debt review. Once the consumer is found to be over-indebted, the debt counselor will negotiate with the consumer’s creditors on their behalf to come up with a payment plan that is affordable and sustainable.
Once an agreement is reached, the debt counselor will apply to the National Credit Regulator (NCR) for a court order, which will confirm the new payment plan and place the consumer under debt review. The consumer’s creditors are then bound by the court order and must adhere to the new payment plan.
