Education6 min read2025-12-03

Debt Review vs Debt Consolidation

Understand the difference between regulated debt review and debt consolidation loans — and which option better protects South African consumers.

Many people searching for a debt consolidation alternative are actually better served by debt review. The two approaches sound similar, but they work very differently.

Debt consolidation in simple terms

Debt consolidation usually means taking a new loan to pay off existing credit. If approved, you may have one repayment — but you also have a new credit agreement, often secured or priced according to risk.

Debt review in simple terms

Debt review restructures existing credit under the National Credit Act with a registered debt counsellor. Instead of replacing debt with a new loan, the process negotiates affordability, interest and distribution across current providers.

Key differences

Factor	Debt Review	Debt Consolidation
Legal framework	National Credit Act process	New credit agreement
Protection	Formal consumer protections	Depends on the new loan terms
New credit	Generally restricted while under review	Creates new debt
Goal	Sustainable rehabilitation	Combine balances into one loan

Which should you choose?

If you are already struggling to meet repayments, adding another loan can deepen the problem. Debt review is designed for over-indebtedness and focuses on debt help that matches your real budget.

Speak to DC Debt Clear for a free assessment before choosing either path.

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Benefits6 min read

Benefits of Debt Review

The practical benefits of debt review for South African consumers — lower repayments, legal protection, creditor coordination and a path to rehabilitation.

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