Debt review also known as Debt counselling is a legal process introduced by the National Credit Regulator. It is a process set up to help South Africans who are struggling to pay off their debt. The debt obligations are restructured, and interest rates are reduced to enable consumers to meet their monthly commitments.

It is dependent on the outstanding debt amount but the maximum time the process lasts is 60 months.

There are a few key indicators that you are struggling with your debt and need help. Ask yourself:

• Are you taking out more debt to pay an existing debt?
• Are you using credit for living expenses? i.e groceries?
• Are you avoiding phone calls from your creditors?
• Are you starting to lose sleep from stressing about your finances?
• Is more than half your salary being used to service debt repayments?

Anyone who has a steady income and feels they may be over-indebted can apply for debt review. You qualify if after assessment your debt counsellor can confirm you are indeed overindebted.

Debt review is the restructuring of all your debt repayments into one affordable monthly repayment by extending the terms of your credit agreements and decreasing interest rates, whereas consolidation entails taking out one large loan to settle all debts and only paying back one loan. Consolidation loans require that you are not over-indebted at the time of application.

No, you do not have to go to court. Courts are used to dealing with debt review applications and rarely need the consumer to attend. The court order is there to protect you and stop the credit providers from hassling you.