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Debt Review or Debt Mediation - Which is Best?

Times are hard and nearly everyone with credit is struggling to make those end of month debt repayments.

If you have been looking for options on how to deal with your debt you may have come across both debt review and debt mediation.

What’s the difference between the two?

And which of the two is safer?

Let’s have a look at both options and discuss why some people chose one option or the other. While they might sound similar, they are actually quite different.

What is Debt Review?

Debt review is a regulated, legal process in South Africa designed to help people who are over-indebted.

It was created by the National Credit Act (NCA) and the debt review process is handled by trained professionals called Debt Counsellors.

Debt review allows consumers to make smaller monthly debt repayments over more time, making things much more manageable and reasonable.

Why people prefer debt review:

    • It’s regulated. Debt Counsellors must complete an NCR approved course and must register with the National Credit Regulator (NCR). This means they are properly trained, and you have someone to report to if something goes wrong. The NCR regularly checks up on all registrants.
    • Fees are affordable. The NCR and debt review industry bodies have standardised fee guidelines for debt review. This ensures fees are not outrageous or unaffordable.
    • Payments are safe. You pay through a Payment Distribution Agency (PDA). These registered companies are audited and regulated to handle your money safely.
    • Court protection. After negotiations your Debt Counsellor sends the debt repayment proposal to the Magistrate’s Court or National Consumer Tribunal (NCT). Once approved, it becomes a legal order that credit providers must follow.
    • Debt concessions. Many credit providers voluntarily offer lower interest rates, fee reductions, or extended payment terms. This not only makes repaying your debt easier, it can help you save thousands over the long term.

What is Debt Mediation?

Debt mediation, on the other hand, is an unregulated, informal process where a person or company promises to call your credit providers to ask for lower payments or discounts.

In reality, this is something you could actually do yourself — and you wouldn’t need to pay anyone to try.

Fees vary from one practitioner to the next. Since fees are not monitored there is room for abuse and no promise or guarantee that things will actually work.

Since credit providers do not have to cooperate, they will often simply refuse any such requests by a third party.

Why some people are drawn to debt mediation:

    • Debt mediation while less effective, doesn’t appear on your credit report. It is good to realise though that while the mediation process itself doesn’t show up, any missed or short payments you make during this time will reflect on your credit profile, which will still hurt your score.
    • Since the courts are not involved debt mediation is totally voluntary and people can bomb out of the process any time they like. This means less pressure to actually sort out your debt.

Which is Better?

Debt review is obviously the safer, smarter option.

Debt review is backed by South African law, carefully regulated by the NCR, and offers full legal protection through the courts. The debt review process has clear timelines, rules, and fees are reasonable and affordable. If a credit provider tries to take legal action against you while you are under debt review, the court order or tribunal ruling offers a strong legal defence (using NCA section 86(11).

Please be careful of anyone claiming to be a debt mediator.

Sometimes, they will claim to offer debt mediation as an alternative dispute resolution agent (ADR). But owing money is not a dispute and debt mediation is not officially recognised by South African law.

These operators are unregulated, risky, and often charge high fees for making calls or sending emails that you could do yourself. In many cases, people pay for promises that simply don’t materialise — leaving them worse off.

Choose Wisely

If you’re overwhelmed by debt, it’s important to choose a legal, structured, and reliable solution.

So, when wondering if you should choose debt mediation or debt review, debt review is the best option.

True, debt review isn’t a shortcut, but it is a safe, professional way to legally protect yourself, your family, and your finances.

Always check that your Debt Counsellor is registered with the NCR, and steer clear of unregulated schemes or promises that sound too good to be true.