When you find yourself in a situation where your debt has become unmanageable you have various options but choosing the option not favourable to your situation could have detrimental consequences.
Here are three options to consider should you find yourself in financial difficulty.


  • Consumers pay their debt with their own money at reduced interest rates and in one affordable installment.
  • Applies to all Credit Agreements within arm’s length with no monetary limitation, excluding judgments and non-credit arrangements.
  • Credit Providers receive distribution payments on a monthly basis as per Court Order granted on the application.
  • Distributions will be undertaken by an accredited Payment Distribution Agent (PDA).
  • Consumers have immediate access to statements, proof of payments, and current outstanding balances.
  • Debt Counsellors and PDA’s are regulated by the NCR.
  • Every consumer is reviewed annually and should it be necessary, their current debt review Order will be amended in accordance to their current financial scenario.
  • Should anything unforeseen happen, your Debt Counsellor is authorised to apply for a 6 month “debt freeze” in terms of Section 86(7)(c)(ii)(cc) of the National Credit Act 34 of 2005, enabling the consumer to resolve the problem and resume their payment once this relieve period has expired.
  • Once all the debts have been settled, the consumer is issued with a clearance certificate which enables them to apply for credit again.


  • Credit Providers receive distributions every three months and interest rates remain unchanged prolonging the consumer’s debt freedom.
  • This is applicable to judgments, non-credit agreements and credit agreements to a maximum of R50 000.
  • Distributions are done by an administrator usually every three months and paid by cheque which leads to additional expenses for the consumer.
  • Administrators are not regulated.
  • Without reducing the interest rates, not reviewing the consumers file and all the hidden costs involved, administration is in most cases an unfavourable option to consumers.


  • It is an actual loan which the consumer needs to apply and qualify for.
  • It is a short term solution which requires strict financial discipline.
  • The loan is more like putting a plaster on a SERIOUS wound.
  • Without financial discipline, Debt Consolidation may worsen their financial situation.
  • The loan bears interest between 20 – 31% over 60 months.

Not only are consolidation loans much more expensive than other options, but it also bears great risk for the consumer.