Long answer:
When you are under debt review, your priority is very clear which is to pay off your debts and regain financial freedom. But here is a question that many clients always; “Is saving still possible while I am under debt review and paying reduced instalments?” The answer to the question is YES and in fact, saving is one of the smartest things you can do during debt review.
What is Debt Review?
Debt review in South Africa is a regulated process that helps over-indebted consumers restructure what they owe into one affordable monthly repayment. A registered debt counsellor assesses your income and essential expenses, proposes a new repayment plan to credit providers, and once accepted and granted by a court or tribunal you make a single consolidated payment each month. Interest and fees are typically reduced, collections pressure eases, and you keep essential accounts active while you repay. When the plan is complete, you receive a clearance certificate and may return to normal credit activity
Can You Save Under Debt Review?
Short answer: yes, within limits. The point of debt review is affordability and stability. If a small, planned savings line in your budget prevents future emergencies from derailing your payments, that supports the process. The key is to save in a way that doesn’t compromise your agreed instalment or essential living costs. Think “micro, protective, purposeful” rather than “aggressive investing.” Your counsellor can help you include a modest savings amount when your budget is reviewed.
How Debt Review Creates Room to Save
One of the biggest benefits of being under debt review is that your debt counsellor negotiates reduced interest rates with your creditors. Instead of paying very high interest rates (as high as 20%+ per annum for unsecured loans such as revolving / personal loans, credit cards, your new structured repayment plan ensures the following:
Lower interest charges each month.
A single, reduced monthly instalment that is easier to manage.
More breathing room in your monthly budget.
The savings from interest cuts and lower monthly instalments are not just numbers on paper they can become the seed money for your emergency fund in debt review.
Practical Ways to Save During Debt Review
- Build a bare-bones budget. To budget under debt review you must list fixed essentials (rent, transport to work, school costs, groceries, electricity, data/airtime), your debt review instalment, and a realistic cushion for irregulars (school trips, small medicals). Cut or trim non-essentials for now (subscriptions, frequent takeaways). Give every rand a job before the month starts.
Set a small emergency fund goal
Even R50 or R100 a month matters. If your instalment dropped thanks to lower interest rates, take a portion of that difference and put it in a savings account. Unexpected expenses (like a broken kettle or medical bill) can throw your budget off track. Having a small savings cushion prevents you from missing payments or turning to loans from unofficial channels such as family, friends or loan sharks. Aim for an initial R1,000–R3,000 buffer. This cushions punctures, co-pays, or short-month surprises so you don’t miss your consolidated instalment. Start with R50–R150 per week via stop order into a separate savings pocket. Once you hit the target, maintain it; don’t chase a huge fund while in review.- Use “sinking funds” for predictable costs Big once-off expenses aren’t really “emergencies.” Create mini-funds for annual licence fees, school uniforms, festive travel, or birthdays. Example: if uniforms will cost R1,800 next January, save R150/month now. Labelled goals reduce impulse spends and last-minute borrowing.
Automate Your Savings
Set up a debit order for the day after the salary lands into a savings account similar to what you would do for your debt repayments. Even a small automated transfer makes saving consistent and effortless. Then automate R100–R300/month into a no-fee savings pocket. Automation beats willpower. If cashflow is tight, use round-ups or “sweep the cents” transfers on payday.- Boost income safelyIf possible, add low-risk side income (overtime, weekend tutoring, selling unused items). Ring-fence a percentage (e.g., 30%) of any extra income for your emergency fund and the rest for essentials or small arrears like municipal balances, always keeping your debt review instalment current. You can find more ways here on how to build small savings pot. You can also build the saving pot by referring friends and family to apply for debt review and receive R500 commission from Debt Sage per referral. You can start the program here refer and earn.
Think Long-Term Rewards
Short term pain for long term gain. By the time you complete debt review (in 3 to 5 years) you will not only be debt-free, but you will also have developed the discipline of saving regularly which sets you up for financial independence. Without a clear plan to manage money differently such as paying with cash, reducing expenses, and setting healthy financial boundaries old habits tend to creep back in. Without building new money habits, the cycle of debt continues. True change comes from changing how you think about and handle money.
What NOT to Do
Don’t skip your consolidated instalment to save more. Missing payments risks termination of the plan and collections restarting.
Don’t start high-risk investments. Focus on stability, not chasing returns.
Don’t hide windfalls. If you receive a bonus or lump sum, discuss with your debt counsellor, a targeted settlement on a smaller balance shortens your term.
Don’t collapse your emergency fund for non-essentials. Protect it for true surprises only.
Don’t apply for new credit during debt review. Applying for credit while under debt review is prohibited and can jeopardise your debt review status. Read more
Case Study: Mpho’s First R10,000 Saved in Debt Review
When Mpho signed up for debt review, her net income was R15,800 and her new consolidated instalment was R5,200. Essentials (rent, transport, groceries, utilities) totalled R8,900, leaving R1,700. Working with her debt counsellor, she set a R250/month emergency line and R150/month uniform sinking fund. She cancelled her TV streaming service (R240) and swapped to prepaid data (saving R180). She also sold unused furniture for R2,600 and took one Saturday shift a month (+R700).
Within 5 months she built R3,000 in emergency savings and R750 towards uniforms. After a small tyre repair in month 6 (R850 from the emergency fund), she topped it up over two months. By month 12, consistent micro-savings, small lifestyle trims, and two extra Saturday shifts helped her reach R10,200 in combined emergency + goal savings without missing a single debt review instalment.
FAQs
Can my budget include savings while under debt review?
Yes, if it’s modest and doesn’t interfere with your court order approved repayment. A small emergency line is often encouraged to keep your plan stable.
How much should I save each month?
Start small: 1–3% of net income, or R100–R300. Increase only after three on-time instalments and stable essentials.
Where should I keep it?
Use a separate, low-fee savings pocket with instant access. Avoid products with penalties or market risk during review.
What happens if an emergency wipes out my fund?
That’s okay, that is what it is meant to do. Rebuild slowly. If your budget has changed, ask your debt counsellor for an adjustment before a payment is at risk.
Can I use a bonus to settle a debt early?
Often yes, and it can shorten your plan. Coordinate with your debt counsellor to obtain information on which accounts target.
Conclusion
Many people believe debt review is about survival only, with reduced interest rates and structured lower monthly repayments. It is also about creating a new financial mindset. You are not just paying off debt but you are building better money habits that you will carry long after you receive your debt review clearance certificate. The bottom line is yes you can save while under debt review. Use the savings created by lower interest rates wisely. Even small amounts, consistently saved, will give you security now and confidence in your financial future.