Debt Consolidation vs Debt Review
These get sold as two flavours of the same thing. They are not. Debt review is a statutory process under section 86 of the National Credit Act, ending in a court order and carrying protection against enforcement. Debt consolidation is a loan. The whole decision usually comes down to whether you need that protection.
Five questions
Side by side
| Debt review | Debt consolidation | |
|---|---|---|
| What it is | A statutory process under section 86 of the National Credit Act | An ordinary credit agreement. Not a statutory process |
| Who assesses you | An NCR-registered debt counsellor, under regulation 24(7) | A lender, on its own credit criteria |
| Protection from enforcement | Yes - section 88(3), subject to sections 86(9) and (10) | None |
| Court involvement | Consent order under section 138, or referral to the Magistrate's Court | None |
| New credit while it runs | Prohibited by section 88(1), other than a consolidation agreement | No restriction, which is either the advantage or the trap |
| Credit record | Recorded as under debt review; expunged under section 71(5) on the clearance certificate, along with the defaults that led to it | Recorded as an ordinary credit agreement. No debt review flag |
| Who pays the practitioner | You. Section 86(3)(b) forbids a fee from a credit provider | Interest and fees to the lender; commission may be paid to whoever sold it |
| Exit | Clearance certificate in Form 19 under section 71 | The loan is settled, like any other loan |
One thing worth being clear about
The National Credit Act mentions consolidation in exactly one context: section 88(1) makes a consolidation agreement the single kind of new credit agreement a consumer who has applied for debt review may still enter into. Section 88(2) then extends the effect of the restriction until all obligations under that consolidation agreement are fulfilled. Consolidation is not a debt relief mechanism recognised by the Act; it is ordinary credit.
- If a consolidation lender tells you debt review will ruin your credit record permanently, that is overstated - section 71(5) requires the bureaux to expunge the record and the defaults that led to it once you have your clearance certificate.
- If a debt counsellor tells you consolidation is always a trap, that is also overstated. For someone who is not over-indebted and can access a genuinely lower rate, it can be the right answer.
- If you are offered "debt intervention", check it first. Section 86A was legislated in the National Credit Amendment Act 7 of 2019, but its commencement depends on a presidential proclamation that had not been made as at 15 August 2026, so it cannot currently be applied for. Confirm with the NCR before paying for it.
Related
The regulator
OurPower is not a debt counsellor and is not registered with the National Credit Regulator. This page is general information about South African debt review law, not financial, legal or debt counselling advice. Debt review is not the right answer for everyone. Only an NCR-registered debt counsellor or a court can determine whether you are over-indebted. Legislation verified 2026-08-15. Sources: National Credit Act 34 of 2005 and the National Credit Regulations.