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Debt review and debt counselling

Debt review is a statutory process for over-indebted consumers. It is not a consolidation loan and it is not free.

Reviewed 29 October 2026 by the WiT Money editorial team. This is general information, not a recommendation from a named adviser.

Key points

  • Only a debt counsellor registered with the National Credit Regulator can conduct debt review.
  • While you are under review, new credit is restricted.
  • A lower combined instalment can still take many years and does not delete the debt.

If your reasonable living costs and your debt instalments no longer fit your income, the National Credit Act provides debt review. A registered debt counsellor assesses whether you are over-indebted and proposes rearranged payments to your credit providers. A court or the National Consumer Tribunal can make the rearrangement an order.

Consolidation is different. Consolidation is a new loan that pays old loans. It can lower the instalment and raise the total interest. Debt review is not that product. Anyone who offers 'debt review' and is not a registered debt counsellor is not offering the statutory process.

What changes while you are in it

You generally cannot take new credit. Providers are notified. Debit orders may be replaced by a single payment distribution. The debts remain until they are paid under the rearranged terms. Clearance, when you qualify, is a formal step. It is not automatic on the day you feel better.

Fees

Counsellors charge fees within the rules that apply to them. Ask for the fee in writing before you consent. A fee demanded in cash before any work, or a promise to remove listings overnight, is a reason to stop.

When a new loan is the wrong tool

If you already cannot pay the agreements you have, borrowing more to 'tidy them up' can deepen the problem. Read the consolidation guide and the debt-review page before you choose. This site does not tell you which one fits your case.

Questions readers ask

Can my employer do this for me?

An employer payroll deduction is not debt review. Debt review is done by a registered debt counsellor under the Act.

Related

Sources

Page updated 29 October 2026. A source date is the day WiT Money checked that page, not a promise the institution has not changed it since.