What is debt counselling?

Debt counselling is a way to find relief from your debt. Consumers must always be able to regain their dignity and self-respect, even in difficult financial times. The embarrassment of not being able to keep up with monthly payments on your financial commitments is difficult to bear. It gets even worse when a debt collector arrives on your doorstep to repossess your vehicle or when the sheriff hands you a summons to appear in court for not paying your debt.

  • Debt counselling is a formal process by the NCA (National Credit Act).
  • To apply for debt counselling, the consumer must approach a debt counsellor.
  • You and the debt counsellor will complete an application form to assess your current financial ability.

During the first consultation, the debt counsellor will explain the process in detail and give the consumer practical guidance.

All the consumer’s credit providers as well as the Credit Bureau will be notified of the application. The credit providers will correspond directly with the debt counsellor to obtain all the information needed to finalise the process.

After the debt counsellor has calculated the consumer’s new monthly repayments it is send to all credit providers.

To finalise the process, the debt counsellor will obtain a court order to restructure the consumer’s debt.

During the consumer’s debt counselling, the debt counsellor will monitor all payments to credit providers and review the payments annually.

Who can apply?

Any person who is not able to repay their debt commitments on time may apply for debt counselling. The person must have a monthly income (either fixed or commission based).

The debt counsellor will do an affordability assessment in order to qualify the person.