If you are struggling to keep up with your monthly debt payments, you may be wondering how to apply for debt review in South Africa.
Debt review is a legal process regulated by the National Credit Act that helps over-indebted consumers repay their debts in an affordable and structured way while protecting them from legal action.
This guide explains the full process in simple terms so you know exactly what to expect.
What Is Debt Review?
Debt review (also called debt counselling) is a formal process where an NCR registered debt counsellor:
- Assesses your financial situation
- Determines if you are over-indebted
- Negotiates reduced repayments with creditors
- Creates a structured repayment plan
Once approved, your multiple debit orders are cancelled, and you make one monthly payment, and legal action from creditors is paused as long as you comply.
Step 1: Get a Free Debt Review Assessment
The first step is to speak to a registered debt counsellor for an affordability assessment.
You will need to provide:
- Your income details
- Monthly expenses
- List of debts
This helps determine whether you qualify for debt review.
👉 You can start with a free assessment here:
https://debtchamp.co.za
Step 2: Complete the Debt Review Application (Form 16)
If debt review is suitable, you will complete Form 16, the official application.
This includes:
- Personal details
- Employment information
- Income and expenses
- All credit agreements
Important:
If you are married in community of property, your spouse must also be included.
Step 3: Credit Providers Are Notified (Form 17.1)
Your debt counsellor will send Form 17.1 to:
- All your creditors
- Credit bureaus
This means:
- You are officially under review consideration
- You cannot take out new credit
- Creditors must provide updated balances
Step 4: Financial Assessment and Over-Indebted Determination
Your debt counsellor will:
- Review your full financial profile
- Check your credit report
- Calculate affordability
If you cannot meet your obligations, you are declared over-indebted under the National Credit Act.
Step 5: Outcome Issued (Form 17.2)
Your counsellor issues Form 17.2, confirming:
- You are over-indebted
- Debt restructuring will begin
At this point, you are officially under debt review.
Step 6: Debt Repayment Plan Is Created
A new repayment plan is developed based on what you can afford.
This plan may:
- Reduce monthly instalments
- Extend repayment periods
- Lower interest rates
The goal is to make your debt manageable.
Step 7: Court Approval (Legal Protection)
The repayment plan is submitted to court and made legally binding.
Once approved:
- Creditors cannot take legal action
- You are protected as long as you pay
Step 8: Make One Monthly Payment
You will pay a single monthly amount through a Payment Distribution Agency (PDA).
The PDA distributes payments to your creditors.
This simplifies your finances and ensures fair payment allocation.
Step 9: Complete Debt Review and Get Clearance
Once all debts are paid:
- You receive a clearance certificate (Form 19)
- Your credit profile is updated
- You can apply for credit again
How Long Does Debt Review Take?
Most debt review processes take:
- 3 to 5 years, depending on your debt and affordability
You can finish earlier by increasing payments when possible.
Requirements to Apply for Debt Review
To qualify, you must:
- Have a regular income
- Be struggling to meet debt repayments
- Be willing to follow a structured plan
Benefits of Debt Review
- Lower monthly payments
- Protection from legal action
- One simple repayment
- Structured financial recovery
Important Things to Know
- You cannot take new credit during debt review
- Missing payments can affect your protection
- Honesty is critical during assessment
Frequently Asked Questions
Can I apply for debt review online?
Yes, many debt counsellors offer online applications and assessments.
Does debt review affect your credit score?
Yes, you will be flagged under debt review, but this is temporary and removed after completion.
Final Thoughts
Debt review is one of the most effective legal tools available in South Africa for managing debt. It gives you structure, protection, and a clear path to becoming debt-free.
If you are unsure whether you qualify or want to understand your options:
👉 Get a free assessment here:
https://debtchamp.co.za