Step 1: Initial Contact
- Forms Needed: None
- Summary: Contact a National Credit Regulator (NCR) registered debt counsellor to express your need for debt review. This can be done via phone, email, or online forms.
Step 2: Telephonic Assessment
- Forms Needed: None
- Summary: The debt counsellor will conduct an initial assessment over the phone to understand your financial situation. They will provide a preliminary restructured amount based on the information you share.
Step 3: Formal Application
- Forms Needed: Debt Review Application Form, Financial Information
- Summary: You will need to fill out an application form and provide necessary financial documents like payslips, bank statements, and a list of creditors.
Step 4: Informing Creditors
- Forms Needed: Form 17.1 (Notification to Credit Providers)
- Summary: The debt counsellor will send a notification to your creditors, informing them that you are under debt review. You are protected under the National Credit Act from this point.
Step 5: Form 17.2 and Notice to Credit Bureaus
- Forms Needed: Form 17.2
- Summary: The debt counsellor will submit Form 17.2 to the NCR, which serves as a formal notice to credit bureaus that you are under debt review.
Step 6: Proposal to Credit Providers
- Forms Needed: None
- Summary: Your debt counsellor will prepare a proposal outlining the restructured payment plan and send it to all your credit providers for approval.
Step 7: Magistrate’s Court Referral
- Forms Needed: Court Documents
- Summary: If any of the credit providers do not agree to the proposal, the debt counsellor will refer the matter to the Magistrate’s Court for a final decision.
Step 8: Negotiation & Payment
- Forms Needed: None
- Summary: Your debt counsellor will negotiate with your creditors to restructure your debt. Once agreed, you will start making payments based on the new structure.
Step 9: Ongoing Payments
- Forms Needed: None
- Summary: Continue making the agreed-upon payments. If your financial situation improves, you can pay more to get out of debt faster.
Step 10: Clearance Certificate
- Forms Needed: Form 19 (Clearance Certificate)
- Summary: Once all debts are paid, your debt counsellor will issue a clearance certificate, and you will be removed from the debt review list at credit bureaus.
Cost Summary
- Application Fee: Around R50
- Restructuring Fee: Up to R6,000 (can be divided into the first 3 payments)
- Monthly Aftercare Fee: Around R450
- PDA Fees 3% of Monthly repayment amount.
- Legal Fees: Varies (only if court intervention is needed)
For a detailed pricing structure, please visit our Debt Review Pricing Guide..