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What is Debt Counselling?
Debt Counselling is a professional service provided for over-indebted consumers. It is a process regulated by the new National Credit Act and provides you, the consumer, with greater protection against creditors wishing to take legal action.
The goal of Debt Counselling is to develop a repayment plan that is affordable to you and acceptable to all of your creditors. This repayment plan will still allow you to meet your basic living expenses. The process with the creditors is managed by your appointed Debt Counsellor who represents your best interests.
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 What happens during the Debt Counselling process?
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How will Debt Counselling affect me?
- Once your Debt Counsellor has notified your creditors of your application for debt review, your creditors will not be able to take legal action against you or repossess any of your assets for a period of three months
- You will be required to pay a reduced, affordable instalment, without necessarily extending the debt repayment period
- You will be able to continue to pay for your basic living expenses
- The fees you pay the Debt Counsellor are included in your repayment plan
- While you have outstanding debt, you will be listed at credit bureaus as "under debt review", however your creditors may not initiate new blacklistings against you
- During the debt review process you will not be able to apply for any additional credit other than debt consolidation loans
- You will develop a repayment plan with a defined end-date
- After you have completed the repayment plan you will receive a debt clearance certificate
- Once you have received your debt clearance certificate, your Debt Counsellor will be able to remove you from your debt review listing at credit bureaus. This will enable you to qualify for credit again.
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Will I qualify for debt review?
Use the calculator below, by filling out the relevant fields, to find out.
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How do I choose the correct Debt Counsellor?
The profession of Debt Counselling is very new. As a result there is variability in the quality of Debt Counsellors. It is therefore very important to choose you Debt Counsellor carefully.
Consumer Assist simplifies this process by only listing pre-qualified Debt Counsellors who meet our high standards.
Our criteria include:
- Accreditation by the National Credit Regulator (NCR)
- Use of Debt Counselling software approved by the NCR
- Compliance with the NCA and the NCR's Guidelines to Fee Structure
- Acceptance of the Consumer Assist Professional Code of Conduct
- The use of the National Payment Distribution Agency to manage your repayments to creditors
- Complies with additional Consumer Assist certification that requires training at regular intervals
To find a Debt Counsellor in your geographic area that meets these requirements click here.
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What are the benefits of Debt Counselling?
A Debt Counsellor will help alleviate your financial strain; they're in a position to negotiate new debt restructure schemes, timescales and even interest rates with credit providers. New debt restructure repayment amounts will be based on what funds you have only after your necessary expenses have been paid - ensuring that your debt becomes affordable for you and your family.
Debt Counselling can provide you with the relevant skills and information necessary to avoid further accumulation of debts by focusing on credit card processes, money management and the use of cash over credit.
Most importantly it provides you with an opportunity to regain control over your debt and your life - to look to the future, safe in the knowledge that you've learnt from the past.
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Where can I find out more information about the NCR and NCA?
http://www.ncr.org.za/the_act.html
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