What is Debt Review?

Debt review is a regulated process in South Africa that helps consumers manage their debt effectively. It was introduced by the National Credit Act (NCA) in 2007 and provides protection against legal action while you repay your debt.
Legal Protection
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The debt review process provides legal protection to over-indebted individuals when they enter the debt review process.
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This protection is granted under the National Credit Act (NCA) and is designed to safeguard consumers from harassment and unfair debt collection practices.
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Once an individual enters debt review, their creditors are legally required to cease all debt collection efforts, including phone calls, letters, and legal action.
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This protection remains in place for as long as you are under debt review.
On this page, we discuss the following:
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How does debt review work?
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Benefits of debt review
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The role of the National Credit Act
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Who qualifies for debt review?
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What happens during the debt review process?
1. How Does Debt Review Work?
Debt review is a solution for individuals struggling to meet their monthly debt obligations.
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The process involves:
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1. Assessment: A qualified debt counsellor analyses your financial situation to determine if you qualify for debt review.
2. Restructuring: Your debt is restructured to allow for affordable monthly payments.
3. Agreement: A new repayment plan is negotiated with your credit providers.
4. Legal protection: Creditors cannot take legal action against you while you are under debt review.
2. Benefits of Debt Review
The benefits of debt review include:
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One monthly payment: All debt is consolidated into one affordable amount.
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Legal protection: Creditors cannot take legal action against you.
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Asset protection: Debt review helps you repay your debt without losing your assets, such as your home or car.
3. The role of the National Credit Act
The National Credit Regulator (NCR) in South Africa oversees the credit industry to ensure fairness and compliance with the National Credit Act (NCA).
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Regulation of credit providers and debt counsellors:
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Protection of consumers against unfair credit practices.
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Consumer education on their rights and financial responsibilities in credit agreements.
The NCR plays a vital role in maintaining a balanced and fair credit system in South Africa.
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4. Who Qualifies for Debt Review?

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South African Citizens: You must be a South African citizen. Debt review applies to debt incurred under the South African National Credit Act (NCA).
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Excessive Debt: Your expenses, including debt repayments, must exceed your monthly income, making it impossible to meet your financial obligations.
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Stable Income: You must have a steady income to ensure that the new repayment plan is sustainable.
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Application Process: A qualified debt counsellor must review your financial situation to confirm that you qualify for debt review.
5.How does the Debt Review Process work?
When you apply for debt review, you can expect the following:
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Creditor Notification: Your debt counsellor will inform all your creditors that you are under debt review.
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Repayment Plan Proposal: Your debt counsellor will negotiate with your creditors to establish a new, affordable repayment plan.
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Court Approval: The new repayment plan will be approved by the court, making it legally binding for all parties.
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Monthly Payments: You will make one consolidated payment per month.
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Questions about Debt Review:

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Will I lose my home or car? No. One of the biggest benefits of debt review is that your assets are protected. As long as you follow the repayment plan, you don’t need to worry about losing your home or car.
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Is this process private? Yes. Debt review is a confidential process that protects your financial information. Your debt counsellor and creditors handle your details with discretion. Your employer, friends, or family will not be informed of your debt review status.
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Will I be blacklisted? No. Debt review is not the same as being blacklisted. While you are under debt review, it will be noted on your credit record, but once your debt is fully repaid, your credit status will be restored.