Debt Counselling South Africa | Here’s How To Become Debt Free (2024)

You are one step away from being debt-free!

The Debt Rescue Plan

The National Credit Act formally introduced Debt Counselling to assist over-indebted consumers like yourself by developing a repayment plan, which is affordable to you as well as acceptable to all your Credit Providers.

Complete our debt assessment!

ID Document
Proof of Income
Proof of Residence
List of living expenses

It’s free of charge and only takes a few minutes

Complete our online debt assessment and provide us with the details of your financial situation.

ID Document
Proof of Income
Proof of Residence
List of living expenses

We’ll assess and setup

your Rescue Plan

Your Debt Counsellor determines whether your monthly expenses and debt exceed your monthly income.

You’ll be placed under Debt Review

and protected from your creditors

We’ll inform all your Credit Providers and the Credit Bureaus that you are under Debt Review.

You only pay a single, reduced payment

that you can afford!

We’ll restructure your payment plan and negotiate with your Credit Providers.

The process is finalised

Your repayment plan becomes a court order.

Our specialist attorneys will apply at the court to make your restructured payment plan a court order.

While undergoing Debt Counselling, you will be protected against legal action taken by your Credit Providers and only have to pay one monthly, affordable reduced payment, leaving you with enough money for your monthly expenses

Enjoy a happier, stress-free you

Become debt free with Debt Rescue!

Request a free, personalised, no obligation debt assessment now!

Many South Africans are over-indebted and are grappling with similar challenges in today's current economic climate. They are finding it increasingly difficult to manage their finances as they try to keep up with the rising costs of essential goods and services.

Why Debt Counselling?

Debt counselling, introduced by the National Credit Act (NCA) in 2007, is a process designed to help over indebted South Africans become debt free in an affordable manner.

Reduced Monthly Repayments

Debt counselling allows South Africans to renegotiate payment terms with creditors, resulting in lower monthly payments. This is achieved by extending the loan periods, making it easier for you to manage your monthly expenses.

Debt Consolidation

Managing multiple payments to various creditors can be complicated and stressful. Debt counselling simplifies this by consolidating your debt into a single fixed repayment plan. This provides a clear timeline for when the debt will be paid off.

This can help with financial planning and gives a clear end date to your debt, unlike revolving credit accounts that can remain indefinitely if only minimum payments are made.

Legal Protection

Debt counselling legally protects you from creditors taking action against you (like repossessing assets or garnishing wages). This legal protection kicks in as soon as the debt counselling process starts and lasts until all the debts are settled.

Structured Debt Repayment Plan

Your debt counsellor will create a structured repayment plan that consolidates all of the debtor's repayments into a single, more manageable monthly payment. This plan is designed to ensure that essential living expenses are covered first, with the remainder going towards paying off debt.

Avoids Long Term Credit Score Damage

By effectively managing debt through debt counselling, individuals can avoid being sequestrated or having their credit score severely damaged. While under debt counselling, a flag will be noted on your credit profile, it is generally seen as a positive step towards managing your debt responsibly.

Financial Guidance and Support

Debt counselling provides individuals with financial advice and support throughout the process. This includes teaching budgeting skills and how to handle finances more effectively to avoid falling back into debt in the future.

Step 1: Reach Out for Help

If you're finding it hard to keep up with your bills and debt payments, the first step is to contact a registered debt counsellor. This is someone who's trained and officially recognized to help people manage their debt.

Step 2: Get a Free Assessment

You'll need to give your debt counsellor details about your income, what you spend your money on each month, and all the debts you owe. This helps them understand your situation.

Step 3: Let the Debt Counsellor Do Their Work

If you decide the process is for you, your debt counsellor will tell your creditors (the people you owe money to) and the credit bureaus (the companies that track credit scores) that you're under debt counselling. This means you're trying to fix your debt situation, and during this time, you can't get more credit (like loans or new credit cards).

Step 4: Work Out a Payment Plan

Your debt counsellor will work out a new payment plan with your creditors. This plan might mean you pay less each month but for a longer time. The plan is made to fit what you can afford after covering your basic living costs.

Step 5: Make One Monthly Payment

Instead of paying each creditor separately, you'll make one monthly payment to a payment agency. This agency then pays your creditors for you. This makes it easier to manage your money and ensures you don't miss any payments.

Step 6: Keep in Touch and Adjust if Needed

Your debt counsellor might check in with you to see how things are going. If your financial situation changes, they can adjust your payment plan.

Step 7: Finish Strong and Clear Your Name

Once you've paid off all the debt under the counselling plan (except for your house loan if it's not included), your debt counsellor will give you a clearance certificate. This is your golden ticket that says you've paid your debts. Your credit record will also be updated to show you're not under debt counselling anymore, and you can start afresh with managing your finances

Remember:

You're Protected:
While you're under debt counselling, your creditors can't hassle you for payment or take legal action against you for the debts included in the plan.
There are Fees:
There are some costs involved in debt counselling, but they're regulated and reasonable.
It's a Fresh Start:
Successfully completing debt counselling can help you manage your money better in the future and avoid getting into the same situation again.

Free online assessment

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Have a question about Debt Review?

Have a burning question? Take a browse through our most frequently asked questions to learn more about Debt Review

What happens when I complete the debt review process?

Once you have completed the debt review process and all of your debts have been settled in full, your debt counsellor will issue a debt review clearance certificate. The debt review clearance certificate serves as proof that you have completed the debt review process and that you are no longer under debt review. […]

What is debt review?

Debt review, also known as debt counselling, is a debt relief measure in South Africa that helps over-indebted consumers get out of debt. The National Credit Act (NCA) introduced the process in 2007 to prevent over-indebted consumers from being blacklisted and having to deal with the consequences thereof. Debt review has become a lifeline for […]

How does the free debt review assessment work?

Getting your free no obligation debt review assessment is the first step in the debt review process. The assessment determines whether you are over-indebted and therefore eligible for debt review. A debt counsellor will conduct a thorough assessment of your financial situation, taking into account your income, expenses, and debts. During the assessment, the debt […]

What happens when I make an application for debt review?

Debt review legislation states that once an individual is under debt review, their creditors cannot take legal action against them without permission from the court. This legal protection is provided under the National Credit Act (NCA) and is intended to protect over-indebted consumers from harassment and unfair debt collection practices. When an individual applies for […]

How long does debt review last?

Debt review is a lifeline for South Africans who are struggling to make ends meet because of unmanageable debt. As everyone’s debt review plan is different, the amount of time the process takes to complete will vary from person to person. Depending on your circ*mstances, it can take between 3 to 5 years to get […]

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