The Debt Review Process: 10 Steps to Financial Freedom

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..

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