FAQs

Which Debts Are Covered or Excluded in Debt Review?

Short answer:

When you apply for debt review all the debts for which a credit agreement was signed between you and a credit provider will be included under debt review. Government or municipal debts, child support, medical bills, and utility bills are excluded.

Long answer:

Debt review covers most credit agreements in your name—think home loans, vehicle finance, personal loans, store accounts, and credit cards. What’s typically not covered are non-credit obligations (e.g., municipal rates/services, SARS taxes, fines, maintenance) and debts already deep in legal enforcement that started before you applied for review (per NCA s86(2)). You must still budget for excluded items while you repay included debts under one affordable plan.

What counts as a “credit agreement”?

Under the National Credit Act (NCA), credit agreements include secured credit (e.g., mortgage/home loan, vehicle finance) and unsecured credit (e.g., credit cards, store cards, personal loans). These are eligible for restructuring through a registered Debt Counsellor, who negotiates a new, affordable plan and seeks a court/tribunal order

Examples that usually qualify:

  • Home loans / mortgages (secured)

  • Vehicle finance / instalment sale agreements (secured)

  • Personal loans, consolidation loans (unsecured)

  • Credit cards & overdrafts (unsecured)

  • Store/clothing/furniture accounts (unsecured) 

Why this matters: only credit agreements under the NCA can be formally re-arranged in debt review. Non-credit obligations are handled alongside (you still pay them), but they’re not part of the actual court order.

Debts that are included in debt review

  1. Secured credit (assets attached)

    • Home loans and vehicle finance can be restructured to protect your essentials while keeping payments current. Home loans are secured by real estate properties. Vehicle finance are mainly loans for purchasing cars or other vehicles. Falling behind can still risk repossession; the aim is stability under the new plan under debt review.

  2. Unsecured credit

    • Personal loans, credit cards, store accounts, and overdrafts are commonly consolidated into one re-arranged monthly instalment with interest/fee concessions negotiated by your counsellor. 

      • Credit Cards: Debts accrued through credit card usage;
      • Personal Loans: Loans that are not backed by collateral;
      • Store Cards: Retail accounts or store-specific credit facilities;
      • Overdrafts: Bank account overdraft facilities
      • Short-Term Loans: Loans meant for short durations, usually with higher interest rates.
      • Payday Loans: Loans intended to be repaid by the next payday.
  3. Joint credit agreements

    • If you share an account (e.g., co-signed home loan), both parties generally need to participate so the agreement can be restructured properly. 

  4. Most other NCA-regulated consumer credit

    • If it’s an NCA credit agreement in your personal name (not a juristic person outside thresholds), it is usually included—unless excluded by the legal-action rule below.

Debts that are excluded (or usually handled outside the court order)

These do not fall under the NCA’s “credit agreement” bucket, so they’re not part of the court/tribunal re-arrangement order—but you must still budget for them:

  • Municipal/service accounts (rates, water, electricity). These often require separate arrangements.

  • SARS tax debt

  • Court fines and traffic fines

  • Maintenance (child/spousal support). Legal obligations must be maintained separately

  • School fees (unless a formal credit agreement exists)

  • Informal loans (friends/family/loan sharks)

  • Insurance & medical provider bills (not issued as credit agreements)
    These are typically negotiated directly with the provider while your debt counsellor ensures the budget allows for them. 

  • Tip: Ask your debt counsellor to ring-fence realistic monthly amounts for these items in your budget so the debt review remains affordable and you stay current on essentials.

When you apply for debt review, we will exclude from the application rent-to-buy agreements, loans obtained from loan sharks, doctors’ fees, and insurance premiums. This is in line with the debt review regulations, as dictated by the National Credit Act and enforced by the National Credit Regulator. The following will also be excluded:

Tip: Ask your debt counsellor to ring-fence realistic monthly amounts for these items in your budget so the debt review remains affordable and you stay current on essentials.

The legal-action rule: when an otherwise eligible debt can’t be included

Even if something is an NCA credit agreement, it may be excluded where legal enforcement steps began before you applied for debt review. Section 86(2) says a counsellor may not accept an application—or include specific agreements—where a credit provider has already taken steps to enforce the agreement (after giving the required Section 129notice). In plain English: if a creditor started enforcement before your application, that account may sit outside the plan. 

  • Creditors must send a Section 129(1)(a) notice before litigation; once proper enforcement is underway, inclusion becomes difficult. Your counsellor will still budget for it and may try to negotiate around it.

Grey areas & special cases

  • Business/juristic debt: Debt in a company/close corporation’s name is generally outside consumer debt review. Consumer review is aimed at natural persons (with limited exceptions). 

  • Recent credit agreements: Some providers try to “exclude” brand-new accounts; however, reputable guidance emphasises that all credit agreements should be included unless excluded by the NCA (e.g., s86(2) enforcement already started). 

  • Suretyships/guarantees: If you signed surety for someone else’s credit, ask your counsellor how this is treated in your affordability and risk assessment.

  • Medical, school, municipal arrears: Not NCA credit—but debt counsellors often structure your budget and may help you approach the provider with a side arrangement.

Conclusion

Debt review typically encompasses a wide array of secured and unsecured debts to provide a comprehensive approach to debt management. Engaging with a qualified debt counsellor will allow for a tailored assessment, ensuring that all eligible debts are included in the debt review plan, and facilitating a structured and sustainable repayment strategy. It is important to disclose fully all your debts to your debt counsellor. Insufficient information may result in creditors not accepting you entering debt review. Find out if you qualify for debt review.

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