Debt Counselling Explained

Everyone has to make some tough financial decisions in their lives, therefore they end up in a lot of debt with ultimately no sight of relief or so the individual claims. But that is not exactly it, with debt counselling in South Africa you can come to some negotiable and easy terms through which you can easily pay off your debt. But for those who find this terminology new, here goes;

What is Debt Counselling?

It is an extremely sophisticated process which takes into account the trained debt counsellors that will help you to get some relief into paying your debt back. These counsellors conduct a thorough financial inquiry based on which your creditors are approached and asked to agree upon some mutual terms for you to pay your debt in a sophisticated way. This can help you carry on with your personal expenses and also excluding an agreed amount for paying your debt.

But for this to work you must be “Over-Indebted” and must qualify for the Debt Review.

Debt review refers to the overall procedure through which your case is assigned to a certified counsellor and to the point where the counsellor continues assisting until your debt is paid off. The overall process time for debt review might vary depending upon the amount of debt.

Requirements to be qualified for debt counselling


  • You have to be employed, this is the first requirement given you are in a stable state to pay for the counselling fee and other charges accompanying the procedure.
  • You need to understand your rights and obligations prior to applying for the debt counselling.
  • If you are in ownership of a particular property with your spouse then a joint application for the debt counselling with your partner should be made.

Is debt consolidation an effective strategy?

While some of you might agree that Debt Consolidation can be an effective strategy to pay your current debts because it might seem efficient to take on an extra loan just to pay the rest of the debts. But actually, Debt Consolidation refers to the process of taking one loan to pay off many others, it is actually a kind of debt refinancing technique. You shouldn’t consider going for this strategy on your own unless advised by your debt counsellor to do so. Some of the times debt consolidation can get you out of the annoying debts at hand and give you an opportunity to pay the recent debt but the downside is that you will not receive reduced interest rates as is only available when you apply for debt review.

Although our offices are based in Umhlanga, we are able to assist consumers in Western Cape, Eastern Cape, Northern Cape, North West, Free State, Kwazulu Natal, Gauteng, Limpopo and Mpumalanga

For a free assessment simply call our offices on : 0871355025 or send an email to :




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