South Africans are facing mounting financial pressure, with many turning to debt counseling as a lifeline. As of 2024, over 10 million South Africans are behind on their debt repayments, and more than 40% of credit-active consumers are considered to be in impaired credit standing. This financial strain has led to a surge in the demand for debt review services, offering structured solutions for those struggling with multiple debts.
According to the National Credit Regulator (NCR), over 250,000 South Africans enter debt counseling each year. The most common reasons include unsecured loans, credit cards, and retail accounts, often taken out to cope with the rising cost of living, unemployment, or unexpected emergencies.
Debt counseling, also known as debt review, is a legal process introduced by the National Credit Act (NCA) to help consumers repay their debts in an affordable and manageable way—without losing their assets. Under debt review, monthly payments are consolidated into one affordable amount, and creditors are prevented from taking legal action.
Interestingly, data shows that consumers who complete the debt review process have a significantly higher chance of becoming debt-free and financially stable compared to those who attempt to manage it alone. The success rate for consumers who complete the program is as high as 85%, with many reporting improved budgeting skills and financial habits post-review.
If you’re struggling with debt, you’re not alone—and there is help. Debt counseling offers a structured, supportive path to financial freedom and peace of mind.
Looking for expert guidance? Our team at Debt Scan is here to help you take control of your finances.
Contact us for a free, no-obligation debt assessment today.