Debt Review Myths
Debunking common myths about debt review in South Africa — from credit records to asset loss and counsellor fees.
Misinformation stops people from seeking regulated debt counselling. Here are myths we hear every week — and the clearer reality.
Myth 1: Debt review erases your debt overnight
Reality: Debt review restructures repayments. Balances are still addressed over time through an affordable plan.
Myth 2: You automatically lose your house
Reality: Debt review is often used specifically to help protect essential assets by intervening before enforcement escalates.
Myth 3: Only “failed” people use debt counsellors
Reality: Over-indebtedness can follow medical events, divorce, job changes or interest rate shocks. Seeking a debt counsellor is a responsible legal step.
Myth 4: Consolidation is always better
Reality: A new consolidation loan is not automatically safer. For many consumers, debt review is the stronger debt consolidation alternative.
Myth 5: You can keep taking new credit as usual
Reality: While under debt review you are generally restricted from new credit — which is part of how rehabilitation works.
Understanding the facts makes the National Credit Act process far less intimidating.
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