What is Debt Review?

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Debt Review was implemented by the National Credit Act (NCA) as a legal debt relief process. How it works is your Debt Counsellor proposes a reorganised debt repayment plan to your Credit Providers, allowing you to make just one lower payment towards all your debts each month. This plan is then declared a legally binding Court Order.

Thereafter, you will pay one affordable payment directly to a Payment Distribution Agency (PDA) once monthly. This payment will cover all of your unsecured debts and the PDA will divide it up between all of your credit providers.

You will make these monthly payments for up to five years, or until all of your debts are settled. Once your debts are paid off, your debt counsellor will issue you with a clearance certificate. The credit bureaus and your credit providers will also be advised that you have completed the Debt Review process.

Accordingly, your credit profile will no longer show that you are under Debt Review and you will be able to apply for credit once again.