What Can I Do If I Can't Afford My Debt Repayments in South Africa?

The Consumer Guide · Updated 9 November 2026 · 5 min read

How do I know if my debt is out of control?

Most people don't wake up one day with a debt problem. It creeps in. A few months of high fuel prices, a bigger school bill, a cut in overtime, and suddenly the numbers don't add up any more.

Here are some common signs that your debt has become too much:

• You use one credit card or loan to pay another.
• You can only pay the minimum amount, and the balance never seems to go down.
• You have missed payments, or you pay late most months.
• You run out of money for food, transport or school fees before month-end.
• You avoid calls from creditors because you don't know what to say.
• You lie awake at night worrying about money.

The National Credit Act calls this being over-indebted. In simple terms, it means you can't pay all your debts on time with the income you have left after basic living costs. If that sounds like you, you're not alone. Millions of South Africans are in the same position.

What should I do first?

The worst thing you can do is ignore the problem. Interest, fees and stress all grow while you wait. Start with these steps:

1. List every debt. Write down who you owe, how much, the monthly payment and the interest rate. Include store cards, personal loans, your car and your home loan.
2. Work out your real budget. Write down your take-home pay. Then list what you must spend each month on rent or bond, food, transport, electricity, school costs and medical needs.
3. Protect the basics first. A roof over your head, food, and getting to work come before a store card.
4. Stop taking on new credit. A new loan to cover old debt usually makes things worse.
5. Look at your options before you fall behind, not after.

What are my options in South Africa?

There is no single answer that suits everyone. These are the main routes people use:

1. Ask your creditor for a payment arrangement

If you only have one or two debts, you can phone the creditor and ask for a lower payment for a while. Some will agree, especially if you call before you fall far behind. Get any agreement in writing.

2. A debt consolidation loan

This is a new loan that pays off several smaller ones, leaving you with one payment. It only works if you can still get credit and the new loan is cheaper. Many people who are already struggling don't qualify.

3. Debt review (debt counselling)

Debt review is a legal process under the National Credit Act. A registered debt counsellor looks at your income and expenses. If you are over-indebted, they negotiate with your creditors to restructure your debt into one lower monthly payment that you can afford.

4. Administration or sequestration

These are court processes. Administration is only for people whose total debt is under R50,000. Sequestration means you are declared insolvent and your assets may be sold. Both are serious steps, and you should get advice before choosing either.

How can debt review lower my monthly payments?

A debt counsellor puts together a plan for all your debts and sends it to your creditors. To bring your payment down, the plan may:

• Spread your debt over a longer period.
• Ask creditors to reduce interest rates or fees.
• Combine everything into one monthly payment, paid to a payment distribution agency that pays your creditors for you.

Once the plan is made legally binding by a court or the National Consumer Tribunal, your creditors must stick to it, as long as you keep paying. While you're under debt review, creditors also can't take legal action on the debts that are included.

How much lower your payment ends up depends on your income, your debts and what your creditors agree to. Nobody can promise a set amount up front.

Who qualifies for debt review?

In general, you may qualify if:

• You are over-indebted and struggling to pay your debts each month.
• You have a regular income, such as a salary or a steady business income.
• Your debts are credit agreements, such as loans, credit cards, store accounts, vehicle finance or a home loan.
• You are not already under sequestration or administration.

Debt review is not for everyone. While you're under debt review, you can't take out new credit. It also usually takes a few years to finish. A good debt counsellor will explain this clearly before you sign anything.