Debt review addresses an existing repayment problem
South African debt counselling operates within the National Credit Act framework and involves a registered debt counsellor assessing the consumer’s finances. It should not be confused with a new consolidation loan or an informal promise to remove debt records. A consumer already struggling with instalments needs to examine income, necessary expenses and the status of each agreement before considering whether further borrowing is appropriate.
Clarify the review status before responding to a loan offer
Debt review has consequences for access to additional credit, so establish whether an application, finding or arrangement is already in place. Ask the registered counsellor to explain the applicable restrictions, fees and repayment process in writing. An offer to lend despite an active review is not proof that the transaction is lawful or affordable. The NCR and the creditor’s dedicated support service can help clarify the correct route for the particular situation.
