Imagine waking up one morning in Johannesburg, checking your bank balance, and feeling a knot in your stomach because you know your debt repayments this month are going to stretch you way too thin. Maybe you’re juggling credit cards from FNB, a personal loan with Standard Bank, and your Nedbank home loan, and it just feels impossible to keep up. You’re not alone. Many South Africans find themselves in this situation, feeling overwhelmed and unsure of where to turn. That’s where the debt review process comes in—a lifeline designed specifically for folks like you who want to take back control of their finances.
- What Is Debt Review, Really?
- How Does the Debt Review Process Actually Work?
- Why Is Debt Review a Good Option?
- Are There Any Downsides?
- How Do Banks Like FNB, Standard Bank, ABSA, Capitec, and Nedbank Handle Debt Review?
- What Happens When You Complete Debt Review?
- What Should You Do Next If You’re Considering Debt Review?
What Is Debt Review, Really?
Debt review is a legal process created under South Africa’s National Credit Act (NCA) back in 2007. It’s there for you if you’re over-indebted—that is, you can’t keep up with all your debt payments in a reasonable way without struggling to cover your basic living expenses. The idea is simple: instead of letting your debts spiral out of control or facing harsh consequences from creditors, you get help from a registered debt counsellor who works with you and your creditors to come up with a new repayment plan that fits your budget.
In practice, it means bundling all your debts into one manageable monthly payment. Your debt counsellor negotiates with banks like ABSA, Capitec, and Nedbank on your behalf to reduce your interest rates or extend repayment terms, so the monthly amount you pay is something you can afford. And once you’re under debt review, your creditors can’t take legal action against you or repossess your assets, as long as you stick to the repayment plan.
How Does the Debt Review Process Actually Work?
Let’s walk through a typical journey. Say you’re earning around R15,000 a month but your debt repayments are pushing R8,000, leaving you barely enough for rent, groceries, and transport. You call a registered debt counsellor—these professionals are listed on the National Credit Regulator (NCR) website—and they do a free assessment over the phone or in person.
They’ll ask about your income, monthly expenses, and all your debts. For instance, you might owe R50,000 on your Capitec credit card, R30,000 on a personal loan with Standard Bank, and have a few smaller store accounts. The counsellor calculates whether your current repayments are sustainable. If they determine you’re over-indebted, they’ll propose applying for debt review.
Once you agree, the debt counsellor informs all your creditors and the credit bureaus that you’re under debt review, which immediately stops any aggressive debt collection actions. Next, they draft a repayment plan that spreads your debt repayments over a longer period, often reducing your monthly payments significantly. For example, your monthly debt payment might drop from R8,000 to R5,000, freeing up R3,000 for essentials.
This proposal goes to your creditors—including big players like FNB and Nedbank—for approval. Once they agree, the plan is formalised through a court order, which protects your assets legally. From there, you make one consolidated monthly payment to a Payment Distribution Agency (PDA), which then pays each creditor their share. This setup simplifies your finances and reduces stress.
Why Is Debt Review a Good Option?
Debt review isn’t just about lowering your payments. It’s about getting a fresh start without the fear of losing your car or home. I remember a friend who was drowning in debt after losing his job in Cape Town. His monthly repayments to ABSA and other creditors were impossible to manage. Once he went under debt review, his repayments dropped by almost 30%, and he was protected from legal action. It gave him breathing room to find another job without the constant pressure from creditors.
Plus, the process is transparent and regulated by the NCR, so you’re dealing with professionals who follow strict rules. The debt counsellor keeps you in the loop, and the court order ensures your creditors stick to the agreed terms.
Are There Any Downsides?
It’s not perfect. Being under debt review means your credit record will show this status, which can make it harder to get new credit or loans during the process, which can last from a few years up to eight years depending on your debt size and repayment plan. Also, you have to be committed to making those monthly payments on time—missing payments can lead to complications or even removal from the process.
Some people worry about the stigma of debt review, but honestly, it’s far better than ignoring your debts and facing repossession or legal battles. In 2024, with rising living costs and interest rates climbing around 10.75% (the repo rate in South Africa as of October 2025), many South Africans find debt review to be a smart, responsible choice.
How Do Banks Like FNB, Standard Bank, ABSA, Capitec, and Nedbank Handle Debt Review?
These major banks are well-versed in the debt review process and have teams dedicated to working with debt counsellors. For example, if you owe money to Capitec and you enter debt review, Capitec will stop charging penalty fees and will work with the debt counsellor to adjust your repayments. Nedbank and FNB operate similarly, ensuring your accounts don’t spiral further out of control while you’re in the process.
However, it’s important to know that home loans are treated differently. Even if you’re under debt review, you usually don’t have to fully pay off your home loan before exiting the process, but your payments must be up to date to avoid repossession.
What Happens When You Complete Debt Review?
Once you’ve paid off all the debts listed under debt review, you’ll get a clearance certificate from your debt counsellor. This certificate is sent to all credit bureaus, and your debt review status is removed from your credit profile. You’re free to apply for credit again without that flag hanging over your head.
It’s a huge relief to many people, and the sense of financial freedom after years of struggling is incredible. My friend, after his clearance, even managed to buy a used car outright with his savings, something he never thought possible during his debt struggles.
What Should You Do Next If You’re Considering Debt Review?
If you’re feeling the weight of debt, don’t wait until creditors start knocking on your door. The first step is to reach out to a registered debt counsellor. You can find one on the National Credit Regulator’s website or through reputable services like Meerkat or Debt Rescue. They’ll do a free initial assessment and explain your options.
Keep all your financial documents handy—payslips, bank statements, loan agreements—because the counsellor will need to review your full financial picture. Be honest about your income and expenses; the more accurate the info, the better your repayment plan will be.
Once you’re under debt review, make sure to keep up with your new payment plan. If your financial situation changes, communicate with your debt counsellor immediately—they might be able to adjust your plan.
Remember, debt review is a legal and regulated process designed to help you regain control. It’s not a sign of failure but a step towards financial health. With the right help and commitment, you can come out the other side stronger and more confident about managing your money.