By Yusuf Aboojee – Fourseven
For many South Africans, the promise of debt review can feel like a lifeline. With rising living costs, stagnant wages, and ballooning interest, the idea of reduced instalments and legal protection offers short-term relief when things feel impossible.
But what happens when that relief becomes a trap?
Today, more than 1.4 million South Africans are under debt review, according to data from the National Credit Regulator. While the system was created with good intentions i.e. to protect consumers from repossession and harassment; thousands remain stuck in the process far longer than they ever expected.
The truth is: debt review isn’t always the way out. And for many, it may not even be necessary.
“We’re seeing a growing number of consumers coming to us after being in debt review for five, six, even seven years and still not debt-free, and often worse off,” says Graham Powell from Credit Doctor, a financial wellness company that’s quietly helping people exit debt review and rebuild their lives.
Why Debt Review Isn’t Always the Answer
Debt review is not inherently bad. For some, it provides a valuable buffer during times of crisis. But for many, the hidden costs, both financial and emotional, begin to add up.
You’re listed as being under debt review on your credit profile. You can’t access further credit. You often pay fees for years. And in some cases, the repayments don’t meaningfully reduce the original debt because of mismanagement, lack of updates, or a one-size-fits-all approach.
“It’s not just the money,” says one call centre agent and father of 2 who was in debt review “It’s the feeling of being locked out of your life. You can’t get finance, you’re constantly explaining yourself, and you start to feel like a failure.”
Credit Doctor recently worked with a 37-year-old teacher from the Free State who had been under debt review for nearly six years and still owed more than half of her original balances. After a full assessment, she was given a structured exit plan, creditor negotiations were initiated, and she became debt-free in under 18 months.
That’s the difference: personalised solutions, not just process-driven paperwork.
What’s Keeping People in Debt Review?
· Lack of information. Many don’t know they have options to restructure or exit debt review with the right support.
· Fear of legal action. Consumers are often told that leaving the process will expose them to aggressive collection.
· Shame. Debt stigma keeps people quiet – and stuck.
“People need to know that they’re not alone, and they’re not powerless,” says the Credit Doctor team. “There are legal, ethical, and cost-effective ways to settle your debt without staying locked in for years.”
Prevention Is Better Than Cure
Credit Doctor also helps people avoid debt review altogether by offering early interventions through budget planning, debt consolidation advice, and creditor negotiations before defaults spiral.
And this doesn’t just benefit the individual. Credit providers benefit too. By helping consumers settle faster and more effectively, lenders recover more and preserve customer relationships.
A Call for Smarter Debt Solutions
The debt crisis in South Africa isn’t going away. But how we respond to it matters.
Debt review can still play a role in the right circumstances. But it should never be the default. People deserve to know their options. They deserve partners who will walk the path with them; not just process their paperwork.