Debt Counselling

Everything you need to know

Debt Counselling History

Debt Counselling became available from 1st of June 2007 to Consumers who are unable to honor in a timely manner, all credit agreements to which they are party as indicated by their history of debt repayment.

Who can apply for Debt Counselling

A consumer who cannot meet his monthly obligations under all Credit agreements, after basic living expenses have been paid, can apply to be placed under Debt Counselling in Terms of Section 86(2) of the National Credit Act 34 of 2005.

Section 86 of the national credit act 34 of 2005 entitles an over-indebted consumer to apply at a registered debt counsellor to be placed under debt counselling. The consumer’s rights are strictly protected in terms of the provisions of the act and the consumer is entitled to a monthly reduction in debt obligations in order to ensure that essential living costs can be afforded by the consumer. Consumer rights are specifically protected by the act and entitles the consumer to a fair and reasonable debt re-arrangement plan.

A Consumer may approach a Debt Counsellor to carry out a Financial review of his/her financial affairs and officially determine whether or not he or she qualifies for Debt Counselling.  The process is known as Debt Review.

Debt Counselling’s Aim

The aim of Debt Counselling is to assist over in debt Consumers in re-arranging their debts in such an order that they can meet their monthly living expenses and also pay each of their Creditors as much as they can afford to every month and thereby avoiding legal action.

Only registered debt counsellors who holds a registration certificate may conduct such a Debt Review and make a determination as to whether the consumer is over-indebted or not.

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