What are the pros and cons of debt review? 

Having a debt counsellor assess your financial health to see whether or not you qualify to go under debt review, can only be considered a responsible decision and a positive first step towards paying back your credit providers and becoming debt free.

However, many individuals are still apprehensive about going under debt review and that is why it is helpful to consider all the pros and cons involved, in order to be trully at peace with your decision and to commit yourself wholeheartedly to the process.


  • You will have to pay your debt counsellor the necessary fees entailed in debt review, which include an application fee, a rejection fee, a restructuring fee, a monthly fee and a legal fee.
  • Once you have entered into debt review, you must comply with your monthly repayments because, if you skip a payment, the agreement will be automatically annulled and your credit providers will be able to take legal action against you again.
  • While under debt review, you will not be able to incur any further debt or take out any more credit agreements, until you have settled your debt and received a clearance certificate.
  • Debt review involves extending your repayment term, so that your credit providers will agree to reduce the amount of your monthly instalments and interest rates.


  • Debt counselling rates and tariffs are regulated by the NCR and DCASA, who will ensure that you are able to afford your living expenses and your monthly instalments, after your debt counsellor’s fees have been deducted.
  • As soon as your debt counsellor notifies your credit providers and the credit bureaus that you are under debt review, your credit providers won’t be allowed to issue you with a Letter of Demands, Summons, or Warrant of Execution against your property to collect the outstanding debt.
  • Once under debt review, credit providers will not be allowed to repossess the assets attached to your debt, such as your car or home, so you will remain the owner of your precious valuables.
  • Your debt counsellor will evaluate your credit agreements to see if your credit providers are guilty of reckless lending and, if this is found to be the case, the debts you owe will likely be written off or significantly reduced.
  • Debt review is an effective way of rehabilitating consumers into the credit market, so you will be able to apply for credit again completion and won’t be rejected due to a negative credit score.