The Complete Guide to Debt Counselling in South Africa (2026)
Everything you need to know about the National Credit Act's debt review process — from application to clearance certificate. Written by NCR-registered debt counsellors.
What You'll Learn — 6 key topics
Do I Need Debt Counselling?
Take a moment to ask yourself if any of these statements apply to you.
10 Warning Signs You May Need Help
Click on any statements that apply to your situation.
You Are NOT ALONE
Please know that you are not alone. Financial and debt stress affects millions of South Africans.
Struggling month after month is not sustainable. It's exhausting. It affects your mental health, your relationships, and your sense of control.
Safe & Legal
Debt counselling is regulated by the National Credit Act. It's 100% legal and government-approved.
Confidential
Your personal and financial information is protected. Your employer won't be notified.
Breathe Again
No more hiding from unknown numbers. No more fear of legal action or repossession.
Protection
Keep your home, your car, and your future. Legal protection starts immediately.
The National Debt Review Center has helped thousands of South Africans regain control of their finances over the past 10+ years. We are ready to help you too.
IMMEDIATE Financial Relief
Reduced Monthly Payments
Stop Creditor Harassment
Asset Protection
Let's talk. We are here to help you immediately.
What is Debt Counselling & How it works?
Debt counselling (also called debt review) is a formal legal process created by Section 86 of the National Credit Act (Act 34 of 2005). It is the only NCR-regulated mechanism in South Africa that lets an over-indebted consumer restructure unsecured and secured credit agreements into a single, affordable monthly payment without surrendering assets.
You qualify if a registered debt counsellor assesses you as over-indebted — meaning your contractual monthly debt obligations exceed what you can reasonably pay after essential living expenses. The test is set in NCA s.79 and is applied independently; it is not based on how much you earn or how many accounts you hold.
Once your application is accepted, your counsellor notifies all credit providers and the credit bureaux within five business days. From that moment, creditors are legally barred from issuing new Section 129 letters, instituting legal action, or repossessing assets covered by the application. You make one consolidated payment each month to a registered Payment Distribution Agent (PDA), who pays each creditor according to the court-approved restructuring plan.
What debt counselling does not do: it does not write off your debt, and it does not erase your credit record overnight. You repay what you owe — at reduced instalments, over a longer term, often at lower interest rates negotiated with creditors — until every account is settled. When the last account is paid, your counsellor issues a Clearance Certificate (Form 19) and the debt review flag is removed from all four credit bureaux.
For the full statutory framework, including all 233 NCR rulebook clauses with our practice notes, see the Official NCR Debt Counselling Guidelines.
What are the steps to apply for debt counselling?
Application Process Steps
Complete Free Assessment
Initial Qualification
Complete our Free Online Debt Assessment Form or book a consultation.
Submit Documents
Document Collection
Provide required documents including ID, payslips, bank statements.
Assessment & Determination
Over-Indebtedness Check
A registered debt counsellor determines whether you qualify.
Budget Creation
Affordability Analysis
A new monthly budget is created covering all basic needs first.
5 Steps Over 60 Business Days
Your complete guide to the debt counselling process from application to court order
Debt Assessment
Free of charge - takes just a few minutes
What We Do
- Assess your financial situation using information you provide
- Pull credit bureau data to verify all outstanding debts
- Our NCR-registered Debt Counsellors conduct initial over-indebtedness assessment
- Completely free of charge with no obligation
What You Need To Do
- Complete our online debt assessment form honestly
- Provide ID, payslips, bank statements, and debt statements
- Be completely transparent about your financial situation
Notify Credit Providers
Form 17.1 sent to all creditors
What We Do
- Contact all Credit Providers and Credit Bureaus
- Send Form 17.1 notification of your debt review application
- You are listed on Credit Bureaus as 'under Debt Review'
- Begin negotiating repayment terms with all creditors
- Load your interim payment plan at Payment Distribution Agency (PDA)
What You Need To Do
- Start making payments according to interim repayment plan
- Do not take on any new credit
- Inform us of any creditor contact
Over-Indebtedness Declaration
Form 17.2 confirms your status
What We Do
- Credit Providers confirm outstanding balances via Certificate of Balance (COB)
- Send Form 17.2 declaring you are over-indebted
- Notify all Credit Providers and Credit Bureaus of over-indebtedness status
- Finalize negotiations for reduced interest rates and instalments
What You Need To Do
- Cancel debit orders for debt repayments (not living expenses)
- Sign Debit Order cancellation forms
- Submit cancellations to Credit Providers
- Begin payments as per interim repayment plan
Finalize Repayment Plan
Your restructured plan is confirmed
What We Do
- Finalize your restructured repayment plan
- Credit Providers accept or reject proposals
- Submit final plan to your PDA for distribution
- PDA collects single monthly payment and distributes to all creditors
- Prepare court application documentation
What You Need To Do
- Sign the Confirmatory Affidavit (the law protects you)
- Maintain payments according to the plan
- You'll receive SMS notifications each month confirming payments
Court Order
Legal protection is formalized
What We Do
- Obtain a court date at Magistrate Court
- Submit application for court order approval
- Court order formalizes your debt restructuring plan
- Legal protection is now fully in place
What You Need To Do
- Continue making payments as agreed
- Refer all creditor enquiries to your Debt Counsellor
- Court appearance is NOT required - we handle everything
After Court Order is Granted
- Creditors legally bound to accept restructured payments
- Full protection from legal action and repossession
- Single monthly payment continues until debts are settled
- Clearance Certificate issued upon completion
60 Business Days
To Court Order
Day 1 Protection
Legal Protection
Single Payment
One Monthly Debit
NCR Registered
Qualified Counsellors
Debt Counselling at a Glance
Why Choose Debt Counselling?
The most comprehensive protection and support for your debt-free journey
Asset Protection
Your home and vehicle are protected from repossession while under debt review
One Payment
Single consolidated monthly payment distributed to all your creditors
Legal Protection
Creditors cannot take legal action, harass you, or contact you directly
Additional Benefits (+15 More)
What Does Debt Counselling Cost?
All fees regulated by the NCR
Maximum upfront: R600
All other fees come from your reduced monthly payment
All fees are VAT exclusive and regulated by the NCR. See official NCR Fee Guidelines for complete details.
Frequently Asked Questions
Common Questions About Debt Counselling
Quick answers to the questions consumers ask most. For deeper coverage see our 50 FAQ about Debt Counsellors and 55 FAQ about Debt Review Removal.
Ready to Start Your Debt Counselling Journey?
Our NCR registered debt counsellors are ready to help you regain control of your finances.
Speak with a Debt Counsellor
Whether you need help managing debt or want to exit an existing debt review, get a free consultation. No obligations.
Do I Need Debt Counselling?
Take a moment to ask yourself if any of these statements apply to you.
10 Warning Signs You May Need Help
Click on any statements that apply to your situation.
You Are NOT ALONE
Please know that you are not alone. Financial and debt stress affects millions of South Africans.
Struggling month after month is not sustainable. It's exhausting. It affects your mental health, your relationships, and your sense of control.
Safe & Legal
Debt counselling is regulated by the National Credit Act. It's 100% legal and government-approved.
Confidential
Your personal and financial information is protected. Your employer won't be notified.
Breathe Again
No more hiding from unknown numbers. No more fear of legal action or repossession.
Protection
Keep your home, your car, and your future. Legal protection starts immediately.
The National Debt Review Center has helped thousands of South Africans regain control of their finances over the past 10+ years. We are ready to help you too.
IMMEDIATE Financial Relief
Reduced Monthly Payments
Stop Creditor Harassment
Asset Protection
Let's talk. We are here to help you immediately.
What is Debt Counselling & How it works?
Debt Counselling = Debt Review
These are two names for the same legal process under the National Credit Act. "Debt counselling" and "debt review" can be used interchangeably.
Legal Framework and Purpose
Debt Counselling is a legal program that is aimed at assisting over-indebted South African consumers who are struggling with their debt repayments. This program is regulated by The National Credit Regulator as per The National Credit Act.
National Credit Act Protection
Debt Counselling or Debt Review is a legal process that is designed to help over-indebted South Africans regain control of their finances by restructuring their debt according to a legally approved plan.
Key Legal Benefits
Immediate Protection
Legal protection from creditors starts immediately upon application
Court-Approved Plan
Legally binding payment plan approved by magistrate court
Asset Protection
Prevents repossession of home, vehicle and other assets
Payment Reduction
Reduced monthly payments based on affordability assessment
Who can apply for debt counselling?
Eligibility Requirements
South African residents can potentially benefit from this financial lifeline thanks to a piece of legislation called the National Credit Act of 2005 (NCA for short). The NCA created the concept of 'debt counselling or debt review' to help people who could not find any other way of coping with substantial money problems.
Over-Indebtedness Definition
This is called 'over-indebtedness' and means a situation in which your debts have become too large – or too many – to tackle without help. Consumers who are struggling to meet their monthly debt obligations qualify to apply for debt counselling.
Qualification Criteria
Income Requirements
Must have regular income to support affordable payment plan
Debt Types
Must have credit agreements regulated by the National Credit Act
Residency Status
Must be a South African resident or have permanent residence
Over-Indebtedness
Unable to meet debt obligations without financial distress
Important: Joint Applications
Consumers married in community of property must jointly apply for debt counselling.
What Does Debt Counselling Involve?
The first step is to acknowledge that you are 'over-indebted' and that you need assistance. You apply for help, and if you are eligible, a debt counsellor is appointed to help you do a full debt review.
Creditor Communication
Your debt counsellor will handle all discussions with your creditors, who can no longer contact you directly once you are under debt review.
Once a practical repayment plan for your debts has been created, your debt counsellor gets a court order to make it all official.
60-Day Legal Protection Period
While the debt review process is happening, you are protected from legal action by any of the organisations you owe money to (called your creditors). This is for a period of 60 days from your application date. This is your 'breathing space' to find a workable resolution.
5 Steps Over 60 Business Days
Your complete guide to the debt counselling process from application to court order
Debt Assessment
Free of charge - takes just a few minutes
What We Do
- Assess your financial situation using information you provide
- Pull credit bureau data to verify all outstanding debts
- Our NCR-registered Debt Counsellors conduct initial over-indebtedness assessment
- Completely free of charge with no obligation
What You Need To Do
- Complete our online debt assessment form honestly
- Provide ID, payslips, bank statements, and debt statements
- Be completely transparent about your financial situation
Notify Credit Providers
Form 17.1 sent to all creditors
What We Do
- Contact all Credit Providers and Credit Bureaus
- Send Form 17.1 notification of your debt review application
- You are listed on Credit Bureaus as 'under Debt Review'
- Begin negotiating repayment terms with all creditors
- Load your interim payment plan at Payment Distribution Agency (PDA)
What You Need To Do
- Start making payments according to interim repayment plan
- Do not take on any new credit
- Inform us of any creditor contact
Over-Indebtedness Declaration
Form 17.2 confirms your status
What We Do
- Credit Providers confirm outstanding balances via Certificate of Balance (COB)
- Send Form 17.2 declaring you are over-indebted
- Notify all Credit Providers and Credit Bureaus of over-indebtedness status
- Finalize negotiations for reduced interest rates and instalments
What You Need To Do
- Cancel debit orders for debt repayments (not living expenses)
- Sign Debit Order cancellation forms
- Submit cancellations to Credit Providers
- Begin payments as per interim repayment plan
Finalize Repayment Plan
Your restructured plan is confirmed
What We Do
- Finalize your restructured repayment plan
- Credit Providers accept or reject proposals
- Submit final plan to your PDA for distribution
- PDA collects single monthly payment and distributes to all creditors
- Prepare court application documentation
What You Need To Do
- Sign the Confirmatory Affidavit (the law protects you)
- Maintain payments according to the plan
- You'll receive SMS notifications each month confirming payments
Court Order
Legal protection is formalized
What We Do
- Obtain a court date at Magistrate Court
- Submit application for court order approval
- Court order formalizes your debt restructuring plan
- Legal protection is now fully in place
What You Need To Do
- Continue making payments as agreed
- Refer all creditor enquiries to your Debt Counsellor
- Court appearance is NOT required - we handle everything
After Court Order is Granted
- Creditors legally bound to accept restructured payments
- Full protection from legal action and repossession
- Single monthly payment continues until debts are settled
- Clearance Certificate issued upon completion
60 Business Days
To Court Order
Day 1 Protection
Legal Protection
Single Payment
One Monthly Debit
NCR Registered
Qualified Counsellors
Documents Required for Your Initial Visit
Your Documents
- Copy of your identity document/passport
- Most recent salary/wage slip (last 6 months if income varies)
- Last 3 months bank statements for all accounts
- Last 2 months credit card statements
- Latest home loan balance statement(if applicable)
- List of informal debts (from family/friends)(if applicable)
- Most recent creditor statements
If Married in Community of Property
If you and your spouse share income and expenses or are married in Community of Property, you'll also need:
- Spouse's most recent salary/wage slip (last 6 months if variable)
- Spouse's bank statements for all accounts
- Spouse's credit card statements
Debt Counselling Benefits Overview
Why Choose Debt Counselling?
The most comprehensive protection and support for your debt-free journey
Asset Protection
Your home and vehicle are protected from repossession while under debt review
One Payment
Single consolidated monthly payment distributed to all your creditors
Legal Protection
Creditors cannot take legal action, harass you, or contact you directly
Additional Benefits (+15 More)
What Does Debt Counselling Cost?
All fees regulated by the NCR
Maximum upfront: R600
All other fees come from your reduced monthly payment
All fees are VAT exclusive and regulated by the NCR. See official NCR Fee Guidelines for complete details.
Disadvantages of Debt Counselling
While debt counselling offers significant benefits, it's important to understand the limitations:
No New Credit
You are not allowed to take out any new credit while undergoing debt counselling until you receive your clearance certificate.
Longer Repayment Period
Your debts might take longer to pay off as a result of paying smaller amounts each month.
Regulated Fees Apply
It does cost money, but all fees are set by law and regulated by the NCR.
Credit Bureau Listing
You will be listed with the Credit Bureau as someone using debt counselling during the process.
Potential for Exploitation
Unscrupulous debt counselors may charge excessive fees or fail to act in your best interest. Always verify your counsellor is NCR-registered at ncr.org.za.
Reduced Financial Autonomy
You have less control over financial decisions as payments are managed by your debt counsellor and PDA. Major purchases require consultation with your counsellor.
Future Lending & Credit Impact
Credit Bureau Listing During Debt Review
When you enter debt counselling, you will be listed with all credit bureaus (TransUnion, Experian, XDS, Compuscan) as being under debt review. This listing:
- Prevents creditors from extending new credit to you
- Protects you from taking on additional debt during rehabilitation
- Is automatically removed once you receive your clearance certificate
60-Month Clean Slate Timeline
Important: Many consumers who complete debt counselling find themselves debt-free with a completely clean credit record within 60 months (3-5 years). This is often faster than attempting to manage overwhelming debt independently.
Rebuilding Credit After Debt Counselling
After receiving your clearance certificate:
Immediate Actions
Request updated credit reports from all bureaus to verify debt review flag removal
Start Small
Apply for a small store card or secured credit card to begin rebuilding
Pay on Time
Consistent on-time payments build positive credit history
Be Patient
Full credit score recovery typically takes 12-24 months of responsible credit use
Debt Counsellor Objectives
- Assess the full extent of your debt situation
- Assess your assets that may be taken into account
- Provide you with an acceptable standard of living while repaying debts
- Retain your home and vehicle where possible
- Provide an affordable and realistic monthly budget
- Resolve the situation in the shortest possible time
- Provide a repayment scheme acceptable to creditors and confirmed by Court
- Prevent repossession of assets where possible
- Rehabilitate you without detriment for the future
- Work honestly and openly with the debt counsellor
- Declare all assets and liabilities – including bonuses and salary increases
- Pay the fees as disclosed at the first meeting
- Adhere to agreed instalments and pay on agreed dates
- Keep in regular contact with the debt counsellor
- Commit to the debt remedy – may include surrendering credit cards
The Debt Review Assessment Process
Form 17.1 - Application Notification
When you apply for Debt Review, your debt counsellor is required to inform all credit providers and credit bureaux of the application within 5 business days after accepting the application.
Certificate of Balance (COB)
Within 5 business days of receiving the Form 17.1 notification, Credit Providers must provide a Certificate of Balance with account information required for the assessment.
Affordability Assessment
The debt counsellor conducts an assessment in accordance with NCA regulations to determine if you are over-indebted and the amount available to repay debt.
Form 17.2 - Outcome Notification
If Over-Indebted
Within 30 days, the debt counsellor notifies all parties via Form 17.2 confirming over-indebtedness.
If Not Over-Indebted
The debt counsellor will reject the application and send a Form 17.2 rejecting the application as per Regulation 25 of the NCA.
Payment Distribution Agents (PDA)
What is a PDA?
Once accepted under debt counselling, you pay one instalment which is then distributed to your credit providers by a Payment Distribution Agent. The PDA is responsible for:
Distribute payments to all creditors
Provide monthly statements to consumers
Attend to queries from all parties
Direct Payment Option
You can choose to pay creditors directly instead of using a PDA. However, be aware:
- You remain responsible to make all payments as re-arranged, in full and on time
- Proof of payments must be sent to the debt counsellor monthly for record-keeping
- Late or short payments risk termination by credit providers
- Debt counselling fees (including aftercare) are still payable
- For a clearance certificate, all aftercare fees must be up to date
Reckless Lending Investigation
What is Reckless Lending?
Under the National Credit Act, a credit provider grants credit recklessly if they failed to conduct proper affordability assessments before approving your loan. This includes situations where the credit provider:
- • Did not assess your ability to repay the debt
- • Did not verify your income and expenses
- • Knew or should have known you couldn't afford the loan
- • Granted credit that made you over-indebted
Investigation Outcomes
If reckless lending is found, the court may:
- Set aside the entire credit agreement (debt write-off)
- Suspend the credit agreement's force and effect
- Reduce the amount owed or reverse interest charged
Investigation Fee: R1,500
If a reckless lending investigation is required, the NCR-regulated fee is R1,500. This covers the debt counsellor's assessment of each credit agreement and preparation of evidence for court if reckless lending is established.
NCT Consent Order Fees
When creditors accept your payment proposal, the matter is submitted to the National Consumer Tribunal (NCT) for a consent order instead of proceeding through Magistrate Court. Two separate fees apply, both collected in Month 2.
NCT Submission Fee
Excluding VAT. Our service fee for preparing and lodging the NCT application on your behalf.
NCT Filing Fee
Per application, 1 April 2026 – 31 March 2027 (increased from R667.72, per Government Gazette No 42337 of 29 March 2019). Paid to the Tribunal.
Note: These fees apply when creditors accept the proposal and the matter goes to NCT. If creditors reject the proposal, the matter proceeds to Magistrate Court with separate legal fees.
What If You Are Unemployed?
The debt counselling programme is for consumers who can provide proof that they can afford the lower monthly instalments that are afforded by the programme.
Exception for Married Couples
If you are unemployed but married in community of property, you can jointly apply for debt counselling with your spouse who has income.
Debt Review Clearance Certificates (Form 19)
In terms of Section 71(2)(b)(i) of the NCA, a debt counsellor must issue a Clearance Certificate (Form 19) if you have fully satisfied all debt obligations under every credit agreement that was subject to the debt re-arrangement order.
What Happens After Clearance
Once a Clearance Certificate has been issued, Credit Bureaus will be required to remove all information relating to debt counselling and you can then start getting credit again.
Early Exit Option (NCA Amendment Act)
The National Credit Amendment Act allows you to finish debt counselling early if you have:
- Settled all unsecured loans in full
- Cleared all arrears on your home loan
- Demonstrated financial ability to satisfy future obligations on mortgage/long-term agreements
The debt counsellor must issue the Clearance Certificate within 7 days after you have met these requirements.
Withdrawing or Terminating Debt Review
Important: Once declared over-indebted and accepted into the process, it is very difficult to withdraw and even more difficult to remove the Debt Counselling flag from your credit bureau record.
Official Resources & Downloads
Access official documentation and regulatory resources for debt counselling in South Africa.
National Credit Act (NCA)
The full text of the National Credit Act 34 of 2005, which governs debt counselling in South Africa.
Download PDFNational Credit Regulator (NCR)
The official NCR website - verify debt counsellors and find consumer information.
Visit WebsiteCredit Ombud
Free dispute resolution for credit-related complaints in South Africa.
Visit WebsiteThe Official NCR Debt Counselling Rulebook
The complete National Credit Regulator Task Team Agreements (Guideline 001/2015) — the binding industry framework governing every debt counsellor, credit provider and PDA in South Africa. Fully indexed by NDRC across 233 clauses and 6 annexures.
Front Matter
Circular, contents and issuance notice for the Debt Review Task Team Agreements of 2010 Guidelines.
Covering Report
Background to the Task Team, terms of reference, identified obstacles, and the recommended approach to compliance.
Debt Review Process & Conduct Provisions
Step-by-step debt review process from Form 17.1 onwards plus expected conduct of debt counsellors, credit providers and PDAs.
Debt Review Assessment Guidelines
Guidelines for assessing a consumer's financial position, declaring over-indebtedness, and structuring affordable repayment proposals.
Minimum Debt Counselling System Requirements
Standards and parameters every debt counsellor restructuring system must meet, including outputs and audit requirements.
Consensual Debt Restructuring Rules
Industry-agreed voluntary concession rules deployed under the Section 48(1) Industry Code of Conduct to combat over-indebtedness.
Standard Documentation
Standard forms, templates and glossary used across the debt review process by debt counsellors, credit providers and PDAs.
Frequently Asked Questions
Process Timeline Questions
Court Approval Timeline
The debt counselling process typically takes 6-8 weeks for court approval once all documents are submitted.
Complete Process Duration
The complete debt counselling process duration is usually 3-5 years.
Timeline Breakdown
- • Assessment: 1-2 days
- • Document preparation: 2-3 days
- • Credit bureau notification: 1-2 days
- • Court application: 4-6 weeks
Cost and Fee Questions
NCR Regulated Fee Structure
Debt counselling costs are regulated by the NCR and include:
Application Fee: R50 - R300
Initial application processing fee
Administration Fee: R300
Document preparation and processing
Restructuring Fee: R8,000 - R9,000
Creditor negotiation and court application
Monthly Aftercare: Maximum R450
Ongoing payment monitoring and support
Payment Schedule
Most debt counselling fees are included in your new reduced monthly payment. You don't pay large upfront costs.
Fee Payment Breakdown
- • Application fee: Due at application
- • Restructuring fee: Spread over first 12-24 months
- • Monthly fee: Included in payment plan
Legal and Protection Questions
Immediate Legal Protection
Once you apply for debt counselling, creditors cannot:
Repossess Assets
Cannot repossess your home or vehicle
Legal Action
Cannot take you to court for debt
Harassment
Must stop all debt collection calls
Garnishee Orders
Cannot issue new emolument attachments
Ready to Start Your Debt Counselling Journey?
Our NCR registered debt counsellors are ready to help you regain control of your finances. Get a free assessment today and start your path to debt freedom.
Speak with a Debt Counsellor
Whether you need help managing debt or want to exit an existing debt review, get a free consultation. No obligations.
Debt Counselling at a Glance
Need Help Now?
Speak with a registered debt counsellor
Find Debt Counselling in Your City
We serve clients across all 9 provinces of South Africa
Western Cape
KwaZulu-Natal
Free State
Mpumalanga
Northern Cape
Official Resources & Legal References
The information on this page is based on South African legislation and regulations. For official information, please refer to the following authoritative sources:
NCR Registered Debt Counsellor
Registration: NCRDC3106