Debt Relief 
What is Debt Mediation?
Debt mediation (also referred to as voluntary distribution or debt negotiation) is an informal agreement between you and your creditors. Unlike Debt Review, it is not governed by the National Credit Act through court orders, meaning you do not receive a permanent flag on your credit profile.
Our experienced mediators negotiate directly with banks and creditors to reduce your monthly installments to an affordable level — without the long-term legal consequences of formal debt counselling.
Debt Mediation vs. Debt Review — Key Differences
| Feature | Debt Mediation | Debt Review |
|---|---|---|
| Credit Bureau Flag | No Flag | Listed as "Under Review" |
| Court Process | Informal Negotiation Only | Formal Court Order Required |
| Asset Protection | Limited (Unless Negotiated) | Full Legal Protection |
| Duration | Flexible / Usually Shorter | Typically 3–5 Years Minimum |
| Credit Access After | Immediate | Restricted Until Complete |
Benefits of Choosing Debt Mediation
- No credit bureau flag — your credit profile stays clean throughout the process.
- Consolidated payments — multiple debts merged into one affordable monthly amount.
- Interest savings — creditors often agree to freeze or reduce interest rates.
- Harassment stops — collection agency calls cease once agreements are in place.
- Flexible terms — agreements are tailored to your exact income and expense structure.
Who Should Consider Debt Mediation?
Mediation is best suited for consumers who:
- Have temporary cash flow problems rather than long-term insolvency.
- Have a relatively low number of unsecured debts (credit cards, personal loans, clothing accounts).
- Want to avoid the formal debt review process and its restrictions.
- Need to protect their credit profile for future financial applications.
Debt Mediation Savings Calculator
Estimate how much you could save monthly through negotiated mediation.
The Mediation Process — Step by Step
Step 1 — Financial Analysis
We review your total debt portfolio, income, and monthly expenses to build a comprehensive affordability picture.
Step 2 — Proposal Drafting
We structure a realistic, legally defensible payment plan — targeting your most aggressive creditors and high-interest accounts first.
Step 3 — Creditor Negotiation
We negotiate directly with creditors to accept the reduced monthly premium and freeze or reduce your interest rates where possible.
Step 4 — Single Monthly Payment
You make one consolidated monthly payment which is securely distributed to all your creditors according to the agreed plan.
Start Saving on Your Debt Today
Speak to one of our friendly debt specialists. We will analyse your situation and present the best possible payment reduction options.
Apply for Mediation →Frequently Asked Questions
What is the difference between debt mediation and debt review?
Debt mediation is an informal, voluntary negotiation between you and your creditors — it does not appear on your credit profile and is not governed by the NCA's formal debt review process. Debt review is a legally binding process under the National Credit Act that flags your credit bureau record for the duration.
How much can I save through debt mediation?
Most clients achieve a 30–50% reduction in their total monthly debt payments. The exact savings depend on your creditor mix, outstanding balances, and how long you have been in arrears.
Will debt mediation affect my credit score?
No — unlike debt review, mediation does not place any flag or restriction on your credit profile. In fact, by bringing accounts up to date through negotiated payments, your credit score typically improves over time.