If you’re struggling to keep up with your debt repayments and you are trying to make a choice between debt review and debt mediation, you might feel confused.

What’s the difference between the two?

And which one is safer and more reliable?

Let’s unpack both options and discuss why some people chose one or the other so you can make an informed decision.

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 is handled by trained professionals called Debt Counsellors.

Why people prefer debt review:

• It’s regulated. Debt Counsellors must complete an approved course and register with the National Credit Regulator (NCR). This means they are properly trained, and you have someone to report to if something goes wrong.
• Payments are safe. You pay through a Payment Distribution Agency (PDA), a third party that is audited and regulated to handle your money safely.
• Court protection. The Debt Counsellor sends a 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. Since fees are not monitored there is room for abuse.

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:

• It doesn’t appear on your credit report. 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 can still hurt your score.

Which is Better?

Debt review is the safer, smarter option.

Debt review is backed by South African law, carefully regulated, and offers full legal protection. The process has clear timelines, rules, and fees all monitored by the NCR. If a credit provider tries to take legal action against you while under debt review, the court order or tribunal ruling offers a strong legal defense.

Be careful of anyone claiming to be a debt mediator. Debt mediation is not 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 don’t materialize — leaving them worse off.

Choose Wisely

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

Debt review isn’t a shortcut, but it’s a safe, professional way to 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.