Long answer:
If you’re under debt review and money feels tight, it’s normal to wonder whether a small personal loan, store account, or extra credit could help you get through the month. Emergencies happen. Groceries run short. A child needs school supplies. The car breaks down. In moments like these, borrowing can feel like the quickest solution.
But if you are currently under debt review in South Africa, the answer is clear:
You cannot legally take new credit while under debt review.
Debt review exists to help you regain control and become debt-free through a structured repayment plan. New borrowing works against that goal and can put your progress — and your legal protection — at risk. Below is a clear, web-ready guide explaining why the rule exists, what the law says, what can happen if you try anyway, and safer ways to handle cash-flow challenges while staying compliant.
Why Debt Review Doesn’t Allow New Credit
Debt review is not just “debt help.” It is a formal process designed to restructure your existing debt so you can afford your monthly repayments and work toward financial stability. The process typically includes:
an assessment of your income and expenses,
a review of your existing debts,
a repayment plan that reduces pressure and makes payments manageable,
and legal protection (as long as you remain compliant).
One of the most important features of debt review is stability. Your repayment plan is based on what you can realistically afford each month after paying for essentials like food, transport, housing, and utilities.
If you take on new credit during this time, it disrupts that balance. New credit creates new repayments, new interest, and new fees — all of which compete with your existing plan and everyday expenses.
New credit is counterproductive
Debt review helps you build a disciplined financial routine. Borrowing again during debt review often leads back to the same cycle that caused the financial distress:
using credit to cover shortfalls,
paying minimum instalments,
falling behind due to fees and interest,
and eventually defaulting.
That is why debt review includes restrictions on borrowing. It’s not meant to punish you — it’s meant to protect your repayment plan and your progress.
The Legal Rule: What the National Credit Act Says
Debt review in South Africa is regulated under the National Credit Act (NCA) 34 of 2005. The NCA includes protections for consumers, but it also sets boundaries to ensure the debt review process works.
Section 88: restrictions on further credit
In general terms, the NCA restricts consumers under debt review from taking on further credit or incurring new charges under existing credit facilities while the process is active. When you apply for debt review, you are flagged as “under debt review” at the credit bureaus. Credit providers can see this when they do credit checks.
This flag is not a suggestion. It is a serious warning that the consumer is in a formal debt restructuring process and should not be offered further credit.
Credit providers must respect the debt review flag
When your profile shows that you are under debt review, lenders are expected to treat you as not eligible for new credit. Granting credit to a consumer under debt review can expose lenders to allegations of reckless lending.
Please In plain language: lenders should not give you a loan, a store account, or increased credit limits while you are under debt review.
Section 71: the clearance certificate (Form 19)
Debt review does end. Once you have met the legal requirements and settled the relevant accounts, a clearance certificate (Form 19) can be issued. This certificate is used to remove the debt review status at the credit bureaus, which allows you to return to normal credit activity — subject to affordability checks.
Important: Debt review rules can be affected by your specific case (such as which debts are included and your legal stage). Always confirm your position with your registered debt counsellor.
Why This Rule Protects You
Many people feel frustrated when they are told they cannot borrow. But the “no new credit” rule is one of the most important safeguards in debt review.
It protects you by:
1) Protecting your repayment plan
Your debt review instalment is carefully calculated. Adding a new loan repayment creates pressure that was never budgeted for, making it harder to keep up with the plan.
2) Preventing a return to unaffordable debt
Debt review is designed to break the cycle of using credit to survive. Borrowing again during the process can restart the cycle immediately.
3) Reducing the risk of default
Defaulting under debt review can have serious consequences. If you cannot maintain payments, creditors may take steps to enforce their rights, and you may lose some of the protection debt review offers.
What Happens If You Try to Get Credit Anyway?
Some consumers still try — often because they feel desperate. Here are the most common risks if you attempt to take new credit while under debt review.
Your debt review process could be placed at risk
Debt review depends on compliance. If you take on a new repayment and it causes you to miss payments, creditors may argue that the process is not working. In cases of default, creditors can seek to enforce agreements, which may include moving to terminate debt review protections depending on your stage and circumstances.
You could face legal action and extra costs
Once legal enforcement starts, the cost of debt can increase quickly due to:
legal fees,
collection costs,
interest at original terms,
and potential judgments.
This can undo months (or years) of progress.
It usually doesn’t fix the real problem
New credit often provides short-term relief but creates long-term stress. If your problem is cash-flow, the solution is usually to improve cash-flow, build a buffer, and adjust your budget — not add another repayment.
Safer Alternatives to Access Cash While Staying Compliant
If you are under debt review and you need money urgently, there are safer ways to close the gap without breaking the rules or risking your progress.
1) Build a micro-emergency fund
Even a small buffer can prevent panic borrowing. Aim for a realistic target like R1,000 to R3,000 in an instant-access savings pocket.
Start small:
R20 a week,
R50 a month,
or any amount you can manage consistently.
The goal isn’t to become wealthy overnight — it’s to create a cushion for sudden expenses.
2) Use “sinking funds” for predictable expenses
Some big expenses are not emergencies — they are predictable, but they arrive unexpectedly if you don’t plan for them. Save a little each month for things like:
car licensing,
school uniforms,
tyres and minor car repairs,
annual service costs,
back-to-school items.
Small monthly contributions can prevent future crises.
3) Boost income (even temporarily)
If possible, explore short-term income boosters:
overtime,
weekend gigs,
babysitting, tutoring, deliveries,
selling unused items at home.
A useful strategy is to ring-fence part of extra income:
60–70% toward essentials and catching up,
30–40% toward your emergency buffer.
4) Cut “leaks” and redirect savings
Many households have expenses that don’t feel big but add up over a month:
unused subscriptions,
frequent takeaways,
premium data bundles,
extra bank fees,
impulse buys.
The key is to redirect those savings into your buffer so you’re not just cutting — you’re strengthening your finances.
5) Speak to your debt counsellor before major changes
If your income changes, your household costs rise, or you face a major emergency, your debt counsellor may be able to help you adjust your plan or budget in a compliant way.
Debt counsellors can also advise you on lawful options if you come into a lump sum, such as early settlement strategies where appropriate.
Frequently Asked Questions
Can I open a store account or increase my overdraft while under debt review?
No. New credit facilities or increases to existing facilities are not allowed while you are under debt review.
When can I apply for credit again?
Usually after your clearance certificate (Form 19) is issued and processed with the credit bureaus, and the debt review status is removed.
What if a lender offers me a small loan anyway?
Be cautious. This may be reckless lending and can put your financial recovery at risk. It is safer to decline and discuss the situation with your debt counsellor.
What happens if my debt review is terminated for non-payment?
You may lose the protections debt review provides, and creditors may take steps to enforce the original credit agreements, including legal action and added costs.
Is there a legal way to exit debt review before completion?
Sometimes, but it depends on your circumstances and legal requirements. In limited cases, court processes may apply if you are no longer over-indebted. In many cases, debt review ends when accounts are settled and a debt review clearance certificate (Form 19) is issued. Always get guidance from your debt counsellor and consider legal advice.
Conclusion: New Credit During Debt Review Is a Hard No — But You Still Have Options
Taking new credit while under debt review is not just risky — it is generally not legally allowed, and it can undermine the stability debt review is designed to create. Debt review works best when you protect your repayment plan, keep your budget stable, and avoid new borrowing that pulls you backward.
The good news is that you are not stuck. You can still manage financial shocks by:
building a small emergency buffer,
planning for predictable expenses,
boosting income where possible,
cutting budget leaks,
and speaking to your debt counsellor early when things change.
How Debt Sage can help
If you’re feeling pressured by rising living costs and you’re worried about keeping up with your debt review payments, Debt Sage can help you stay on track. Our debt counsellors can review your budget, help you plan micro-savings, and map out compliant strategies to help you complete debt review and move toward a debt-free future.