Debt Review vs Debt Mediation: What's the Real Difference?

If you're comparing your options, it helps to see debt review and debt mediation side by side rather than treating them as interchangeable — because legally and practically, they aren't.

Debt review: formal, regulated, with legal protection

Debt review is a formal process under the National Credit Act, regulated by the National Credit Regulator. A registered debt counsellor restructures all your credit agreements into one plan. While you comply with it, you get legal protection from further action on those debts — and if a credit provider won't agree to the proposed plan, there's a route through the courts or the National Consumer Tribunal.

Debt mediation: informal, flexible, no statutory protection

Debt mediation is a negotiation, conducted account by account, outside that formal legal framework. It can be a reasonable option in some situations, but it comes with a real trade-off: there's no statutory protection. A creditor can decline your proposal, and can still pursue legal action against you during the negotiation.

So which one is “better”?

Neither is universally better — they solve different problems. Debt review suits people who need the legal protection and are prepared to work within a regulated, structured process. Debt mediation may suit people whose situation doesn't require (or doesn't qualify for) that level of formal intervention. This is exactly the kind of thing worth discussing with a consultant before deciding, rather than guessing from a comparison article alone.