Debt Counselling: Is It Right for You?

Debt counselling, also called debt review, is a legal process under the National Credit Act where a registered counsellor negotiates reduced, affordable repayments with your creditors and combines them into one monthly payment. It protects you from legal action, but you cannot take new credit while under review, and it typically lasts 3 to 5 years.

Debt Counselling: Is It Right for You?

If you are overwhelmed by multiple debts, debt counselling (debt review) may be an option.

What is it?

A registered debt counsellor assesses your finances, negotiates reduced payments with creditors, and creates a single affordable repayment plan — all protected by law.

Benefits

• Monthly repayments reduced to what you can afford
• Legal protection from creditor action while under review
• Single monthly payment replaces multiple obligations
• Interest rates may be reduced

Things to consider

• You cannot take on new credit while under debt review
• It remains on your credit record until all debts are settled
• Long-term commitment — typically 3 to 5 years
• Not all debts qualify

How to apply

1. Contact a registered counsellor via the NCR at www.ncr.org.za
2. They assess your income, expenses, and all debts
3. If you qualify, they apply for a court restructuring order
4. You make one monthly payment distributed to your creditors

If you are considering debt counselling, please inform us at support@ekasipaycredit.co.za so we can note it on your account.

For related guidance, read How to Get Out of Debt and Budgeting 101.