FAQ
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Frequently Asked Questions
Everything you need to know about debt review, your rights, and what to expect from the process.
Debt review (also called debt counselling) is a legal process under the National Credit Act that helps people who are over-indebted restructure their debt payments so they can afford them.
A registered debt counsellor:
A registered debt counsellor:
- Reviews your finances
- Negotiates lower monthly payments with creditors
- Creates a structured repayment plan
You may qualify if:
- You are struggling to pay your debts
- Your monthly expenses exceed your income
- You want legal protection from creditors
In terms of the National Credit Act, a consumer is over-indebted if their income is not enough to cover:
- Essential living expenses
- Current creditor payments
Debt review continues until all included debts are paid off. For many people it takes 3-5 years, depending on:
- Total debt
- Income
- Negotiated repayment plan
You exit when all debts are settled. You will receive a clearance certificate upon exit, which removes the debt review flag from your credit profile.
Yes. A Debt Review flag appears on your credit profile until you complete the program. Once complete and all debts are settled, your credit record will be cleared, giving you a fresh start.
Your assets are protected under the National Credit Act as long as no legal action has started before entering debt review.
Once the process begins and creditors are notified, they generally cannot take legal action if:
- Your application is accepted
- You follow the repayment plan
No. While under debt review you cannot apply for new credit until the process is completed.
Yes, your debt counsellor will create a single monthly repayment plan that matches what you can realistically afford.
No, creditors must deal directly with your debt counsellor once you are under debt review, protecting you from harassment.
Yes, interest rates on unsecured debts can be negotiated and significantly reduced, sometimes by up to 100%.
Yes, you have the right to choose any NCR-registered debt counsellor you trust to handle your debt review.
Once you've completed the process and paid your debts in full, your credit record will be cleared, giving you a fresh start.
Absolutely. The debt review process is confidential and you are legally protected from unfair treatment or threats.
