You’ve heard of the term but are not entirely sure what it is? Debt counselling is a process
available in South Africa to help South African consumers regain financial control, repay their
debt, and become debt-free. If you find that you are having a battle to make your monthly debt
repayments, you can apply for debt counselling with a registered debt counsellor.
How does this work?
After you make an appointment with a debt counsellor, he will verify whether you are actually
overindebted. He does this by taking a look at your income and your monthly debt obligations
If the debt counsellor does find that you are overindebted, he will formulate a repayment plan.
This repayment plan needs to be approved by a court order, and this ensures you are protected
from any legal action taken against you.
Your new repayment plan includes the following:
- the time your debt counselling process will take,
- the amount you will pay for your debt each month.
As such, as per your new repayment plan, the amount you need to pay each month will be only
one monthly installment that will cover all your debt obligations. Your debt counsellor will
approach your credit providers on your behalf and ask for lower interest rates on your loans.
After you have finished paying off your debt, and the process is complete, you will receive a
debt clearance certificate. As a result, your creditors, and the credit bureaus are aware that you
have completed the debt counselling process.
Can anyone apply?
Yes, debt counselling is available to anyone who is battling to meet their monthly debt
obligations. However, you also need to be employed to apply.
Also, when you have completed the debt counselling process, you will need to start rebuilding
your credit score.
Debt counselling is a lifeline for those who are truly overindebted. It helps you to reach your
goal of becoming debt-free, responsibly.
Do you need assistance with debt counselling? Speak to a consultant at One Debt for guidance