How does the free debt review assessment work?

A free, no-obligation debt review assessment is the initial step in the debt review process, assessing an individual’s financial situation. A debt counsellor reviews your credit report and monthly income and expenses to determine your debt-to-income ratio. A high ratio indicates difficulties in repaying debts. In South Africa, an individual is considered over-indebted if they cannot meet their debt obligations and have enough money to cover basic living expenses.

If a debt counsellor identifies an individual as over-indebted, they apply for debt review on their behalf. The process involves submitting an assessment report and other documents to the National Credit Regulator for approval. The assessment helps the debt counsellor understand the individual’s financial situation and create a realistic repayment plan tailored to their needs.