Debt counselling in South Africa
Understand your options with an NCR-registered debt counsellor
If debt repayments no longer fit after your basic living costs, debt counselling can help you understand whether formal debt review or another next step is appropriate. Start with a clear assessment of your income, expenses and credit commitments.
NCR-registered process
— Debt counselling must be handled by a debt counsellor registered with the National Credit Regulator.
Assessment before promises
— A counsellor should check your income, living expenses and credit commitments before recommending a route.
Fees explained upfront
— A free first assessment is not the same as free debt counselling. Ask for the applicable fees before a formal process starts.
A practical next step
— You should leave the first conversation understanding what happens next and what is expected from you.
What debt counselling means
Debt counselling is a regulated service for consumers who may be over-indebted. You apply to an NCR-registered debt counsellor, who assesses your income, necessary living expenses and credit commitments before deciding what route is appropriate.
Debt counselling and debt review are closely connected, but they are not exactly the same thing. Debt counselling is the professional assessment and guidance. Debt review is the formal process under the National Credit Act that may be used to reorganise eligible credit repayments when a consumer is found to be over-indebted.
Debt counselling is not a new loan, instant debt cancellation or a guaranteed reduction. The recommendation, repayment proposal and time needed depend on your finances, your credit agreements and the formal process that applies to your case.
When debt counselling may be worth discussing
Your income covers basic living costs but not all agreed debt repayments.
You are borrowing or using one credit facility to pay another debt or to cover essentials.
You are skipping some accounts so that you can pay others.
You are receiving demands, summonses or repeated creditor contact.
You want a registered professional to assess your full position before it gets worse.
Eligibility and the right next step depend on your individual circumstances and the stage of each account. Tell the counsellor about every account and legal notice.
How to choose a debt counsellor
Check that the counsellor is registered with the National Credit Regulator and ask for the registration details.
Ask for the current fee schedule and a plain explanation of when each fee becomes payable.
Expect a proper affordability assessment before any promise is made.
Ask who will communicate with creditors, how payments will be distributed and how progress will be reported.
Avoid anyone who guarantees an outcome, pressures you to sign immediately or presents a new loan as debt counselling.
Important points before a formal debt review
Debt counselling fees apply if you enter the formal process. Ask for the current NCR-aligned fee schedule and make sure the costs are explained before you commit.
You cannot take new credit while you are formally under debt review. After the required debts are settled and a clearance certificate is issued, you may apply for credit again, but approval is never guaranteed.
There is no single fixed repayment period for everyone. The time depends on your income, necessary living costs, debt balances, repayment plan and whether you keep to the agreed payments.
Do not ignore a summons, repossession notice or other legal document. Share it immediately so the counsellor can explain what options may still be available at that stage.
Why speak to Debt Review Centre
DRC works through NCR-registered debt counsellors NCRDC1437 and NCRDC1355.
Your first assessment is free. It is a chance to understand your position and next step; it is not the full formal debt counselling process.
The assessment focuses on your actual income, expenses and credit commitments before a route is recommended.
Debt counselling FAQs
Is debt counselling the same as debt review?
Debt counselling is the service provided by a registered debt counsellor. Debt review is the formal National Credit Act process that may follow when the assessment finds that a consumer is over-indebted.
How do I know if I qualify?
A debt counsellor must assess your income, necessary living expenses and credit commitments. The answer depends on your full financial position, not only the size of one instalment.
Can I get new credit while under debt review?
No. New credit cannot be granted while you are formally under debt review. Eligibility to apply again returns after the required process is completed and a clearance certificate is issued, but a future credit provider still makes its own decision.
How long does debt counselling take?
There is no fixed period that applies to everyone. The length depends on your income, essential expenses, debt balances, repayment plan and whether payments remain up to date.
Does debt counselling have fees?
Yes. Formal debt counselling is not free. The applicable fees should be explained before you commit. DRC’s initial assessment is free.
What if creditors are already calling or I have received legal papers?
Tell the counsellor about every call, demand, summons or notice. The options and protections available can depend on the stage of each account, so do not delay or ignore legal documents.
Can I speak to someone before applying?
Yes. Start with a free assessment to understand your options before deciding whether to enter a formal process.
Start with a clear debt assessment
Share your income, expenses and credit commitments with an NCR-registered debt counsellor. We will explain whether debt review may fit your situation and what happens next.