What is Debt Counselling?
Is a debt rehabilitation programme, created under the National Credit Act 34 of 2005, whereby qualified Debt Counsellors evaluate a consumers debt and make a determination as to their over-indebtedness ( how greatly a person is in debt as opposed to their monthly income ).As a part of the Debt Counselling Process a consumers financial situation is restructured and appropriately distributed to living expenses and debt obligations, allowing the consumer reasonable space and time to rehabilitate their situation through a safe and monitored programme. Debt counselling falls under legislation and is overseen by the National Credit Regulator.

How does a person Apply for Debt Counselling Also Known As: Debt Review//Debt Relief//Debt Rehabilitation?
It is a simple process, whereby a consumer can approach a certified Debt Counsellor and request them to assess their financial situation, after providing them with the necessary documentation. Any consumer can apply for Debt Counselling, however not all counselling providers are certified, so it is essential to verify their registration number.

What are the alternatives to Debt Counselling?
There are numerous alternatives to Debt Counselling such as the following:
Consolidation: this is where a consumer may consolidate all his debt obligations into one debt, thus paying off a single debt, meaning a single interest rate and less debt management. Consolidation is in the form of a lump sum, and requires affair amount of collateral, of which may sometimes be hard to provide.
Administration: is a legal means whereby application is made to court to be placed under administration and an order granted, your debt obligations are then paid off periodically. An administration order is only applicable to Debt under R50 000.
Sequestration: is an extreme option whereby, a consumer approaches the court, to declare that the consumer is unable to service/pay their debt obligations, thereafter the consumers assets are sold to pay off their debts. This usually results in the consumer being left with no assets and under the supervision of a trustee and with an order hanging over their name.

Do I get Blacklisted If I go Under Debt Counselling?
In the case of Debt Counselling your profile gets marked as being under debt review, and unlike blacklisting it is dependent on the Debt Counselling process, and is there to highlight to credit providers not to lend out more credit during this period.

Which type of accounts can go under Debt Counselling?
Basically if it is a credit agreement (vehicle finance, personal loans, credit cards etc) then it can be included, however service agreements such as cellphone contracts and water and lights cannot be included

What if I have received Summons?
Unfortunately summons means legal action has been instituted by the credit providers, which means that obligations under legal cannot be included in the programme, however, it is important to highlight these obligations as there may be credit providers willing to include them. If you have letters of demand those are still fine and may be included in the Debt Counselling programme but, they have to be brought quickly.

How much will it cost me to go under Debt Review?
Fortunately our fee structure is regulated and our fees are prescribed, and although the initial application fee is R50-00, the restructure fee is dependent on the individual assessment.

Is the Debt Counselling programme confidential?
Yes, consultation can be done at our offices, or telephonically, we will not notify your employers or any person at all.

Do I have to be located in the same area as my Debt Counsellor?
Not at all, the process can be done entirely through the telephone, fax or email.

On completion of the programme will I be cleared?
Definitely a Clearance Certificate will be issued notifying the credit bureaus and credit providers of your clearance.