You may qualify for debt review if you are earning an income but cannot afford your monthly debt repayments after covering essential living expenses. Debt review is designed to help overindebted South Africans who want a legal, structured and affordable way to repay their debt.
Many people are unsure whether they qualify because they are not completely behind on payments yet. In some cases, you may still qualify even if you are up to date, but your repayments are becoming too difficult to manage. The key question is whether your debt repayments leave you with enough money for basic living costs such as food, rent, transport, school fees, medical costs and household expenses.
The easiest way to find out is to complete a free DebtChamp assessment. This helps us review your income, expenses and debt commitments so we can guide you on whether debt review may be suitable for your situation.
You May Qualify If
You may qualify for debt review if you have a regular income but your current debt repayments are no longer affordable. Debt review is not only for people who have already defaulted. It can also help people who are close to falling behind and need support before the situation becomes worse.
You may qualify if:
- You have a regular income
- Your debt repayments are too high
- You are behind or close to falling behind
- You have unsecured debt, vehicle finance, store accounts or a bond
- You cannot afford food, rent, transport or school fees after paying debt
- Creditors are contacting you repeatedly
- You are receiving demand letters or legal threats
- You are using one loan to pay another loan
- Your debit orders are failing because there is not enough money in your account
- You feel overwhelmed by multiple accounts and payment dates
- You want a legal and structured way to repay debt
If several of these points apply to you, it may be time to get help. Debt review can provide a more organised repayment plan based on what you can realistically afford.
Debt Review Requirements In South Africa
The main debt review requirement is that you must be over-indebted or at risk of becoming over-indebted. This means your monthly debt repayments are too high when compared to your income and essential living expenses.
To qualify for debt counselling, you generally need to have some form of income. This may include a salary, wages, commission, business income or another regular source of money. The reason income is important is because debt review is a repayment process. It helps you repay your debt in a more affordable way, but it does not remove the need to pay your creditors.
You should also have credit agreements that can be included in the debt review process. These may include personal loans, credit cards, overdrafts, store cards, retail accounts, vehicle finance or a home loan.
A proper assessment is important because every person’s financial situation is different. The amount of debt alone does not determine whether you qualify. Your income, expenses, dependants, debt repayments and affordability all need to be considered together.
You May Not Qualify If
Debt review is a powerful solution, but it is not the right option for everyone. You may not qualify if your situation does not meet the basic debt review requirements or if you are looking for a different type of financial product.
You may not qualify if:
- You have no income at all
- You are already sequestrated
- Your debt is not from credit agreements
- You only need a short-term cash loan
- You are not willing to follow a structured repayment plan
- You want to take on more credit while under debt review
- You are looking for a way to avoid paying your debts completely
Debt review is not a loan and it is not a quick cash solution. It does not give you money, and it does not erase your debt overnight. Instead, it helps restructure your repayments into a more manageable plan so that you can repay your creditors over time.
If you do not qualify for debt review, DebtChamp may still help you understand what other options you can consider, depending on your financial situation.
What Information Do We Need?
To assess whether you qualify for debt review, DebtChamp may ask for basic information about your financial position. This allows us to understand your affordability and whether the debt review application process may be suitable for you.
We may ask for:
- Your income
- Your monthly expenses
- Your debt balances
- Your creditors
- Your employment status
- Your contact details
- Whether you are already under debt review
- The types of accounts you are currently paying
- Whether any creditors have started legal action
- How much money is left after your monthly debt repayments
This information helps create a clear picture of your situation. The more accurate the information is, the better the assessment will be.
What Happens After The Assessment?
After you complete the DebtChamp assessment, your information is reviewed to determine whether debt review may be suitable. If you appear to qualify, a consultant can explain the next steps and help you understand how the process works.
This may include reviewing your affordability, explaining the debt review application, discussing the types of debts that may be included and helping you understand what happens once creditors are notified.
You are not expected to know everything before asking for help. The purpose of the assessment is to give you clarity. It helps you move from uncertainty to a better understanding of your options.
Why It Is Better To Check Early
Many South Africans wait until they have already missed several payments before asking for help. By that stage, creditors may already be sending final demands, legal notices or making repeated calls.
Checking whether you qualify for debt review early can help you take action before the pressure becomes worse. Even if you are not yet behind, but you are struggling to keep up, a free assessment can help you understand whether debt counselling is worth considering.
Early action can help you protect your household budget, avoid taking more loans to cover existing debt and create a more realistic plan for your financial recovery.
Find Out In A Few Minutes
If you are asking, “Do I qualify for debt review?”, the best next step is to complete a free DebtChamp assessment. It only takes a few minutes to start, and it can help you understand whether debt review is the right option for your situation.
Complete the DebtChamp online assessment and let us help you understand your options. A clear plan starts with knowing where you stand.