What Happens During Debt Review? A Step-by-Step Guide

If you’ve read our article on Debt Consolidation vs Debt Counselling, you may now be wondering: What actually happens once I enter debt review?

Debt review (also known as debt counselling) is a structured legal process that helps over-indebted South Africans reduce monthly repayments, avoid legal action, and work toward becoming debt-free. Understanding the journey upfront removes fear and uncertainty, and helps you make an informed decision.

Here’s a simple step-by-step breakdown of how debt review works.

Step 1: Free Debt Assessment

Your journey starts with a confidential financial assessment. A registered debt counsellor reviews:

Your income
Your living expenses
All your debts

This determines whether you are over-indebted under the National Credit Act.

If you qualify, you can voluntarily apply for debt review.

Step 2: You Are Placed Under Debt Review

Once you sign the application:

Your creditors are notified
Your credit profile is flagged
You are legally protected from legal action and asset repossession

From this point forward, creditors may no longer demand unaffordable payments.

Step 3: Debt Restructuring Plan Is Created

Your debt counsellor negotiates with your creditors to:

Reduce monthly instalments
Extend repayment terms
Lower interest where possible

This process is called debt restructuring. The goal is to create one affordable monthly payment based on your real budget.

Step 4: Court or Tribunal Approval

The new repayment plan is submitted to court or the National Consumer Tribunal for approval. Once granted:

The plan becomes legally binding
All creditors must follow it

You now have a clear, structured repayment roadmap.

Step 5: Single Monthly Payment

You make one monthly payment to a Payment Distribution Agency (PDA). The PDA distributes funds to all your creditors according to the approved plan.

No more juggling multiple accounts. No more collection calls.

Step 6: Completing Debt Review

As debts are paid off:

Accounts are settled one by one
Your monthly instalment reduces over time
Eventually, you become completely debt-free

Once all debts are cleared, your debt review flag is removed and you can rebuild your credit profile.

How Long Does Debt Review Take?

Most debt review plans last between 36 to 60 months, depending on:

Total debt amount
Interest rates
Affordable repayment amount

The important part: you stay protected the entire time.

Why Debt Review Works

✔ Stops legal action
✔ Stops creditor harassment
✔ Reduces monthly repayments
✔ Creates financial breathing room
✔ Provides a realistic path out of debt

Why Choose DebtKing?

At DebtKing, we walk this journey with you from start to finish.

NCR-registered debt counsellors
Free confidential assessment
Transparent communication
Ongoing support until you’re debt-free

You’re not just another case number — you’re a person regaining control.

Ready to Start?

If debt feels overwhelming, help is closer than you think.

👉 Visit www.debtking.co.za
👉 Get your Free Debt Assessment today