Everything You Need to Know

How does the debt review process affect my vehicle finance?

Your vehicle payment will be reduced by 30% by negotiation with your creditor. We also reduce your interest rate and give you legal protection.

How long will it take to negotiate with all creditors and when will I start to pay the first installment after I apply?

We take control of your debt and reduce your payment instantly. You will sign an form 16 via a mobile link, giving us authority to negotiate on your behalf. If it’s not too late in the month, you can start immediately. We advise that you open a new banking account so the debit of your new payment runs smoothly and you are not debited the original payment by your creditors. Alternatively you will start making one reduced repayment from your next salary date. This is one of the great benefits of debt review, bringing you immediate financial relief.

Will I be blacklisted if I apply for debt review?

NO, there is no black-listing. Once Debt Recon finds you to be over-indebted, a flag is added to the your credit record assisting you not to get further into debt. This flag is removed after all debt is paid and you can now apply for further finance.

How do my creditors get paid?

You will make a single monthly debt repayment as calculated by your Debt Counsellor, to a Payment Distribution Agency (PDA) as registered with the National Credit Regulator. The PDA will in turn pay each of your creditors in proportion to your total debt outstanding.

Which accounts can be included in the debt review process?

All secured lending such as property and vehicle finance can be included in the debt counselling application except where judgement has been obtained or a Letter of Demand (also known as a Section 129 Notice) has been issued. Unsecured lending such as credit cards, store cards, and personal loans are included in the debt review application. Service agreements such as cell phone contracts, levies in arrears, electricity bills, pharmacy accounts, school fees etc. are not included in the debt review process. We free up cash in your budget so that you can afford to pay for this.

Must I continue to pay my accounts?

You will no longer pay your credit providers directly. If you are under debt review, the National Payment Distribution Agency (NPDA) collects the required funds from you and distributes the agreed monthly repayments to all your credit providers on your behalf.

What is the difference between debt counselling, administration and sequestration?

Debt Counselling was formally introduced by the National Credit Act to help over-indebted consumers, especially in our current economic crisis. The goal of Debt Counselling is to develop a repayment plan which is affordable to you, as well as acceptable to all your credit providers. Debt Recon will restructure your current monthly payments, and obtain a court order on your behalf.

Administration: is a legal process, where the installments are reduced, but creditors only receive payment every three months and the term of repayment is much longer than under Debt Counselling. Debt must be less than R50 000 to qualify. Debt Counselling was brought in to replace Administration, and is the best option. Debt Counselling has no blacklisting.

Sequestration is a legal process whereby all your debts are written off, and gives you a fresh start in life. This option is available to you if your liabilities exceed your assets, and your available income is not enough to restructure your current credit agreements by submitting a reasonable payment proposal to your creditors.

How are my payments reduced?

In terms of the National Credit Act we, as Debt Counsellors, are allowed to lower your monthly payments and in most cases by lowering your current interest rate to between 0% to 5%.

How long does debt review take?

We aim to have you completely debt-free in 3-5 years, however this is influenced by your own unique circumstances and regular payment. Your Debt Review can be ended as soon as you are in a position to resume payments in terms of the original credit agreements. For most consumers, this means your mortgage bond will be your only remaining obligation when you leave Debt Review until this is paid. You will be issued with a clearance certificate.

Will my employer know that I am under debt review?

No, we will never contact your employer to obtain any information or to confirm anything. Your debt review application is treated as fully confidential through the entire application and debt review process.

What documents are needed?

  • Your ID document

  • Your payslip

  • 3 Months bank statement reflecting your salary

  • Antenuptial contract (if applicable)

  • List of monthly expenses

  • List of all income

  • We provide you with a free credit check, but if your account does not appear here, we require a statement as proof of that account.

Can I rent a property if I am under debt review?

Yes. Debt review is not a credit agreement, therefore you can definitely rent a property.  If you are in the process of renting a property, Debt Recon can provide a letter to the your agent or landlord indicating that the amount needed for the rent payment is available in your budget.

Can Debt Recon help me if I live in a different province?

Debt Recon operates nationwide, from a central office as common practice, as all banks operate from central offices. Operating from one place helps Debt Recon better control business processes and develops them when the need arises. We have attorneys in every jurisdiction of South Africa.

Must all debt review clients appear in court?

In order for debt review to be permanent, a court order has to be granted. The court order is put in place in order to legally protect clients from being harassed by credit providers, as well as to prevent creditors from taking legal action against them during the process.

Debt Recon's expert legal team is responsible for combining all debt review court applications, which are then signed by you.

A magistrates court deals with the matter in absence of the client 

Can I cancel my debt review ?

Yes you may. once you can resume your normal payment. A cancellation fee of 75% of the debt counsellor fee is payable if you have not yet paid your first instalment and we have completed negotiations with your creditors

How will I know if my name is cleared with the credit bureau?

Consumers can get their credit report– free every 12 months on

0861 482 482.

The credit report will display if the consumer is no longer under debt review on the front page of the credit report. If the credit report does indicate that the consumer is still under debt review, please call us and request that we investigate why the clearance certificate has not been received and the credit report not updated.

Can I see see a debt counsellor if I've received a letter of demand?

Yes, a consumer should visit a Debt Counsellor urgently if they receive a letter of demand. Debt Counsellors can attempt to negotiate with creditors on a letter of demand. Once summons is issued a creditor can elect not to include the account. It is imperative that you seek help before summons so that your payment can be reduced.

What proof will I have indicating that I am under debt review? 

You will be issued with a letter to this effect from the Debt Counsellor, as well as a unique NCR reference number

Can a bank or credit provider provide debt counselling?

No, it is a conflict of interest. Debt Counsellors are independent of creditors and act with YOUR best interests in mind. Debt Recon is here to help you with impartial advice. Our team of Debt Counsellors and consultants have been professionally trained to get you back on track, settle your debt, and start a new debt-free life.

Why can a garnishee (emolument attachment order) not be included?

It is already a Court Order and only a Court can make a change to the Court Order.

If I have additional cash, can I pay the creditors directly?

All payment distributions must take place through a registered Payment Distribution Agency, such as the NPDA. Arrangements for bulk or once-off payments can be arranged through your Debt Counsellor. The Debt Counsellor will restructure your repayment plan.

Will I still be able to use accounts and credit facilities?

No, you cannot afford more credit because you are over-indebted. Once your debt has been paid in full and a Clearance Certificate is issued to you by your Debt Counsellor, the flag will be removed and you will be able to enter into new credit agreements.

Where can I find more information about the NRC & NCA?

You can read more about the National Credit Regulator (NCR) on their website at:

For more information about the National Credit Act, visit:

Does debt counselling mean that I get a payment holiday?

No, the debt review process only provides you with one payment holiday, depending on the circumstances. Now that your payment is reduced it is easy to keep up with regular monthly payments. You must make these monthly payments as agreed with us, from the first month you apply. If you fail to make your monthly payments you are in default and the Debt Counsellor and/or the credit providers could terminate your debt review. This places you at risk as your credit providers can proceed with legal action.

Will my name be listed at a credit bureau?

Yes, during the debt review period, your name will be listed with a credit bureau as being under debt review. Once the debt has been repaid the Debt Counsellor will issue a Clearance Certificate and instruct the relevant credit bureau to remove the debt counselling notation from your record. This means that all records that you were under debt review will be removed. Once this process is completed you should be able to access responsible new debt if required.

Should I keep paying my full insurance premiums?

Your home and vehicle must be insured. This is often a condition of your financing contract. You must keep paying the full instalment for insurance and other policies, even while you are under Debt Counselling. Speak to us to make provision for this in your budget.

How do I qualify for debt review?

You must be declared overindebted. This means that you are struggling to make ends meet, your accounts are in arrears.

How did I get so far in debt?

Most people, at some stage of their life, have acquired debt. It’s how you deal with and manage your debt that makes the difference. Maybe you lost your job, experienced a medical issue that resulted in a massive medical bill or you overspent on your credit cards, whichever the reason, it’s best to tackle debt early on.

Will I have to sell my assets?

This is unlikely. It might be wise to sell some assets that you do not need but this will be discussed with you.

I have Summons / Section 129 Letter, is it too late?

It is never too late to get good advice. Even if one of your debts has a summons all your other debts are no doubt pressurizing you too. A Debt Counsellor can try make arrangements with your creditors even if you have summons. Debt Recon has been successful in these negotiations for 10 years, because we pride ourselves with having a strong legal team. We are able to make arrangements to include these accounts.

What is 'reckless credit'?

When a creditor gives a consumer credit beyond their legal means of repayment and this is a sum they cannot afford, this is reckless credit. There are also other types of illegal credit agreements from loan sharks that have excessive interest rates. If you think this has happened to you a Debt Counsellor can investigate to see if reckless Credit has been granted. If this is the case a court could order the debt to be written off or postpone repayment on that debt.