what is debt counselling, debt review

What is Debt Counselling?

Debt counselling was formally introduced in 2007 by the National Credit Act and is a closely managed debt solution. A debt counsellor will assist a client that struggles to pay his debt by placing the client under debt counselling, also referred to as debt review. Through debt review, the client will regain control over his finances and will be able to make monthly debt payments.

Our debt counselling process will help a client that is struggling to pay his debt by negotiating lower monthly instalments and interest rates with the credit providers. This will ensure that the client will be able to settle his debt while only paying what he can afford.

We have a high rate of acceptance when extending term and reducing interest rates with creditors. Most of our clients are usually debt free within 60 months which in itself proves that debt counselling is a highly effective way of becoming debt free.

What are the benefits of debt counselling or debt review?

  • A debt counsellor will, on behalf of a client, do a formal assessment of the client’s finances and then draw up a suitable budget.
  • A new payment plan is drawn up and negotiated on behalf of the client, with the credit providers.
  • This will ensure that the client will be able to make affordable monthly debt payments.
  • Creditors will not contact the client to ask for money or threaten the client with legal action.
  • A client will not receive a "blacklisting" or judgment while under debt counselling.

Who can apply for debt counselling?

  • Any consumer in South Africa that struggles to pay debt can apply. The debt counsellor will assess the client’s finances and then make a decision. Only when the assessment finds that the client cannot comfortably pay his debt, will the debt counsellor place him under debt review.
  • Only consumers with an income can apply. Any form of income will be acceptable.

To find out if we will be able to help you, please complete the form on this page. Alternatively, give us a call on 087 550 11 22.