The Debt Counselling Process
This page is all about the actual debt counselling (debt review) process. On this page, we will outline how the debt counselling process can help improve your financial situation and get out of debt. First, let’s explore what Debt Counselling (Review) is and who may be eligible to benefit from this service.
What Is Debt Counselling?
Debt Counselling also known as Debt Review is a legally regulated process introduced in 2007 by the National Credit Act (NCA), designed to assist over-indebted consumers. Debt Review provides financial relief by restructuring your debts into a single, more affordable monthly repayment, while also offering essential legal protection from creditors. This process is overseen by registered debt counsellors and regulated by the National Credit Regulator (NCR).
Who Qualifies for Debt Counselling?
Debt counselling is available to South African consumers who:
- Are over-indebted, meaning their financial commitments exceed their income.
- Have a steady income
- Are willing to work with a registered debt counsellor to restructure their debts.
Do you have too much debt?
Take our quick quiz and find out if you are over-indebted.
The Debt Counselling Process: Step-by-Step
The debt review process follows a strict legal framework laid out by the National Credit Act to help South Africans restructure debt through an affordable, court-approved repayment plan.
Step 1: Reach Out for Help
The first step is simple: Contact us for a confidential and obligation-free debt assessment. Our friendly team will guide you through the process and answer all your questions.
Many South Africans are paying significantly more on their monthly debt repayments than they need to. In less than 3 minutes, you could unlock a whole new world of savings and take control of your financial future.
Step 2: Obligation-Free Financial Assessment
Our registered debt counsellors will assess your financial situation. This involves:
- Reviewing your income and expenses.
- Analysing your outstanding debts and monthly obligations.
- Determining whether you are over-indebted. If you qualify, the debt counsellor will formally place you under debt review.
Step 3: Negotiation with Creditors
Your debt counsellor will negotiate with creditors to create a customised repayment plan, which typically includes:
- Reduced monthly instalments.
- Reviewing your income and expenses.
- A structured repayment term that aligns with your financial capacity.
Step 4: You will pay one reduced monthly debt repayment
Once the repayment plan is in place, you will make a single, consolidated monthly payment through a Payment Distribution Agency (PDA).
This stage of the Debt Counselling Process ensure that:
- Your payments are distributed correctly to each creditor.
- You remain consistent with your repayment schedule without the risk of missed payments.
- The process is transparent and structured, helping you regain financial stability.
Step 5: Legal Protection & Peace of Mind
A court order will formalise the repayment agreement, ensuring that:
- Creditors are legally obligated to adhere to the new repayment terms.
- You are fully protected from legal action, including repossession threats.
- Your home, vehicle, and other essential assets remain safeguarded while you work towards settling your debts.
Benefits of Debt Review
Choosing debt review offers numerous advantages, including:
- Immediate Financial Relief
- Lower Installments
- Protection from Legal Action
- No More Harassment from Creditors
- Protection Against Blacklisting
- One Consolidated Monthly Payment
- Living expenses prioritised
- Expert Guidance Throughout the Process