Free & Confidential
Debt Counselling South Africa
Struggling to keep up with repayments? You are not alone. Over 10 million South Africans are over-indebted. A registered debt counsellor can help you regain control of your finances through a legal process protected by the National Credit Act.
What is Debt Counselling?
Debt counselling, also known as debt review, is a formal legal process established under Section 86 of the National Credit Act (NCA). It is designed to help over-indebted South Africans restructure their debt repayments into a single, affordable monthly payment.
A registered debt counsellor assesses your complete financial situation, negotiates with your creditors to reduce interest rates and extend repayment terms, and creates a restructured payment plan that fits your budget.
During the debt review process, you are legally protected from creditors taking action against you, including repossession and legal proceedings. This protection remains in place as long as you keep up with the restructured payments.
Legal Protection
Once under debt review, creditors cannot repossess assets, issue summons, or garnish your wages while you maintain payments.
One Payment
All your debts are consolidated into a single affordable monthly payment distributed to creditors by a Payment Distribution Agency (PDA).
Reduced Rates
Interest rates are negotiated down significantly (often by 50% or more), and repayment terms are extended to reduce your monthly instalments.
Signs You May Need Debt Counselling
If any of these sound familiar, it may be time to speak with a debt counsellor
Using credit to pay credit
Taking new loans or using credit cards to pay off existing debts each month
Creditor calls and letters
Receiving calls from debt collectors or threatening legal letters from creditors
More than 40% of income goes to debt
Your monthly debt repayments exceed 40% of your take-home salary
Skipping payments regularly
Consistently missing or making late payments on loans, accounts, or credit cards
No money before payday
Running out of money for essentials like food and transport before the end of the month
Worried about repossession
Living in fear that your car, house, or other assets may be repossessed by creditors
How Debt Review Works
The debt counselling process follows a structured legal framework under the National Credit Act
Free Assessment
Complete our free online assessment form or speak with a debt counsellor. They will evaluate your income, expenses, and all outstanding debts to determine if you qualify as over-indebted under the NCA.
Application Filed (Form 16)
If you qualify, the debt counsellor files a Form 16 application with the National Credit Regulator (NCR) and notifies all your creditors that you are under debt review. Creditors must immediately stop all legal action.
Debt Restructuring Proposal
Your counsellor negotiates directly with each creditor to reduce interest rates, waive fees, and extend repayment terms. A restructured payment plan is prepared showing your new single monthly payment.
Court Order / Consent Order
The restructured plan is presented to the Magistrates Court for approval. Once granted, the court order is legally binding on all parties. Your reduced payments are locked in and cannot be changed by creditors.
Monthly Payments via PDA
You make one monthly payment to a registered Payment Distribution Agency (PDA), which distributes the funds to all your creditors according to the court-approved plan.
Clearance Certificate
Once all debts are fully paid, your debt counsellor issues a clearance certificate. The debt review flag is removed from your credit profile and you are free to access credit again.
Costs & Fees
All debt counselling fees are regulated by the NCR and included in your monthly payment — no upfront costs
| Fee Type | Amount |
|---|---|
|
Initial Consultation Assessment of your financial situation |
FREE |
|
Application Fee Once-off fee for filing Form 16 |
R50 |
|
Restructuring Fee Once-off fee for restructuring your debts |
R300 |
|
After-care Fee Monthly fee (5% of instalment, max R450) |
5% (max R450/mo) |
|
Legal Fees (court order) Included in monthly payment, not upfront |
Varies |
All fees are regulated by the National Credit Regulator (NCR). A legitimate debt counsellor will never ask for large upfront payments.
Free Debt Assessment
Complete this confidential form to get an assessment of your debt situation. We will connect you with a registered NCR debt counsellor who can help.
Alternatives to Debt Counselling
Debt counselling is not the only option. Consider these alternatives depending on your situation
Debt Consolidation Loan
Combine multiple debts into a single loan with a lower interest rate. Best if your credit score is still fair and you can qualify for a new loan.
Apply NowAffordability Calculator
Use our free calculator to understand your debt-to-income ratio and see how much you can actually afford to repay each month.
Check AffordabilityNegotiate Directly
Contact your creditors directly to negotiate reduced payments, interest rate reductions, or payment holidays. Many creditors prefer this to formal debt review.
Read Our GuidesFrequently Asked Questions
Common questions about debt counselling in South Africa
Debt counselling (debt review) is a formal legal process under the NCA where a registered counsellor restructures your existing debts with reduced interest rates and extended terms. You cannot take on new credit during the process.
Debt consolidation is taking out a new, single loan to pay off multiple debts. It simplifies your payments but requires qualifying for a new loan. Your credit remains open.
Yes. A debt review flag is placed on your credit profile at all credit bureaus (TransUnion, Experian, Compuscan). This prevents you from taking any new credit during the process. However, once you complete the debt review and receive your clearance certificate, the flag is removed and your credit profile is restored. Many consumers find their score actually improves after debt review because all accounts are paid in full.
The duration depends on your total debt amount and restructured payment plan. Typically, debt review takes between 36 to 60 months (3 to 5 years). Shorter-term unsecured debts are usually paid off first, while vehicle finance and home loans may take longer. You can also make additional payments to settle sooner.
No. Debt counselling is completely voluntary. Only you can apply for debt review — creditors cannot force you into it. However, if you are struggling to meet your repayment obligations, it is often the best option to protect yourself from legal action and asset repossession.
You can apply to withdraw from debt review, but it is not always straightforward. If a court order has been granted, you need to apply to the court to have it rescinded. It is important to discuss this with your debt counsellor, as withdrawing can expose you to immediate legal action from creditors.
Most credit agreements can be included: personal loans, credit cards, store accounts, vehicle finance, home loans, overdrafts, cellphone contracts, and payday loans. Debts that cannot be included are: SARS tax debt, criminal fines, student loans from NSFAS, and maintenance/alimony payments.
A legitimate debt counsellor must be registered with the NCR (National Credit Regulator). You can verify their registration at www.ncr.org.za or call the NCR at 0860 627 627. Be wary of anyone who asks for large upfront fees, guarantees specific outcomes, or is not willing to provide their NCR registration number.
Missing payments during debt review is serious. After two consecutive missed payments, creditors can apply to have the debt review terminated and take legal action against you, including repossession. If you are struggling to make payments, contact your debt counsellor immediately — they may be able to renegotiate the plan.
Take the First Step Today
Whether you need debt counselling or a consolidation loan, we can help you find the right solution. Your assessment is free and completely confidential.
Need help now? Call the NCR helpline: 0860 627 627