Long answer:
Debt review works only if you can make a reliable monthly payment. You don’t have to be formally employed, but you (or your household) must have verifiable, regular income—e.g., salary, pension, UIF benefit, rental income, maintenance, or a spouse/partner contribution—so a counsellor can propose one affordable instalment and a court/tribunal can confirm it. This aligns with the NCA framework: debt review is a re-arrangement of your credit obligations for over-indebted consumers; it doesn’t write off debt and still requires repayment capacity.
What debt review is—and why income matters
Debt review (debt counselling) is a regulated NCA process for over-indebted consumers. A registered debt counsellor assesses your budget, notifies credit providers within five business days (Form 17.1), negotiates a new plan, and seeks a magistrates’ court or National Consumer Tribunal order. From there, you pay one monthly instalment via a Payment Distribution Agent (PDA) until completion. Because the outcome is a payment plan, some steady income is needed to support it.
The NCA defines over-indebtedness (s79) and lays the foundation for debt review, but it doesn’t promise debt write-offs—your ability to repay under a re-arranged plan is key.
Can you apply if you’re unemployed?
Yes, if you still have reliable, provable income
Debt review is possible when you’re between jobs and can show regular income sources, such as:
UIF unemployment benefit (proof: UIF payment letters or bank statements)
Pension or annuity income
Rental income (lease + bank proof)
Formal maintenance (court order or recurring payments)
Spousal/partner household income contributed to the plan (supported by bank proof and a joint budget)
Counsellors and industry bodies consistently emphasise that a workable monthly instalment is required to make a compliant proposal and obtain a binding order.
Probably no—if you have no income at all
If there’s no reliable income (not even verifiable help from a partner or family), a debt counsellor cannot credibly propose a monthly repayment or pass a court affordability test. In that case, debt review is usually not appropriate right now. Consider the alternatives below and return to debt review once income resumes. (Many reputable providers state that some regular income is necessary to qualify.)
Documents that help you qualify (even if you’re not “employed”)
ID and proof of address
Bank statements (last 3 months) showing UIF, pension, rental, maintenance, or partner deposits
Any court orders (maintenance) or lease agreements (rental)
A household budget reflecting how shared income covers essentials + the proposed instalment
This evidence allows the counsellor to compile a compliant affordability assessment and serve Form 17.1 notices within five business days of accepting your application.
Process & timeline if you qualify
Assessment & application (Form 16)
Your counsellor confirms over-indebtedness and documents your income sources.Creditors notified (Form 17.1) — ≤5 business days
Formal notifications go to all credit providers and credit bureaux; call pressure typically starts easing after this step.Proposal → negotiations → order
A single, affordable instalment is proposed and confirmed by a court/tribunal order. Once granted, it’s binding if you comply.One payment via a PDA
You pay one debit; the Payment Distribution Agent disburses to each creditor—accurately and on schedule.Finish & exit (Form 19 clearance certificate)
On completion (or the mortgage-only route), your counsellor must issue clearance certificate (Form 19) and notify the credit bureaus to remove the “under debt review” flag.
If you have no income right now: practical alternatives
If you’re currently unemployed and have no provable income, these steps can stabilise your situation until you can enter debt review:
Engage creditors directly: Ask for a temporary payment holiday, reduced instalments, or interest concessions; put agreements in writing and keep emails/SMSes.
Check UIF and grants: Ensure your UIF claim is active; enquire about applicable social grants (e.g., SRD).
Prioritise essentials: Rent/bond, utilities, food, transport to interviews—pause subscriptions and non-essentials.
Avoid new credit: Additional borrowing can worsen affordability and may be declined under responsible-lending rules.
Consider legal advice if you’re facing imminent enforcement (e.g., Section 129 default notices or summons) and can’t make proposals yet.
When your income restarts (job offer, UIF flowing, partner’s contribution formalised, or new rental contract), revisit debt review promptly—earlier applications prevent some accounts being excluded for pre-application enforcement under Section 86(2).
FAQs
Do I need a full-time job to qualify?
No. You need reliable, verifiable income—salary, UIF, pension, rental, maintenance, or household/partner contribution—sufficient to fund a monthly instalment.
Can my spouse’s income be used?
Yes, many plans are built on household income. Provide bank statements and a joint budget so the counsellor can justify affordability to the court/tribunal.
What if I’m on UIF only?
It can qualify if the benefit is regular and large enough to support a plan. When UIF ends, tell your counsellor early so they can vary the plan (or reassess).
What if a lender keeps calling?
After acceptance, your counsellor must send Form 17.1 within five business days; calls typically drop and stabilise after your order is granted—provided you pay on time.
Is debt review a write-off?
No. It’s a repayment process under the NCA. You still pay, just at a sustainable rate via a PDA.
When does the “under debt review” flag fall off?
After completion, your counsellor issues Form 19 and notifies bureaux to remove the flag. Keep your certificate and check your reports.
Quick comparison (Am I ready for debt review?)
| Situation | Income present? | Suitable for Debt Review now? | What to do next |
|---|---|---|---|
| Unemployed with UIF / partner income / rental | Yes (verifiable) | Likely yes | Gather proof → affordability test → Form 17.1 → proposal |
| Unemployed with no income | No | Not yet | Stabilise essentials, seek payment holidays, activate UIF; re-apply once income resumes |
| Employed but short every month | Yes | Yes | Apply early to avoid pre-application enforcement (s86(2)) and protect assets |
What to prepare (checklist)
ID & proof of address
3 months’ bank statements (showing UIF/pension/rental/partner deposits)
Payslips or UIF letter (if applicable)
List of all credit agreements + balances
Proof of essential expenses (rent/bond, transport, utilities, school/medical)
Any Section 129 notices or legal letters (for the counsellor to manage)
Conclusion
Not employed but have some income? Send your last 90 days’ bank statements and any UIF, maintenance, or rental proof. We’ll confirm eligibility, send Form 17.1 within five business days of acceptance, and map your single affordable instalment and court/tribunal timeline—today.