How to Find and Choose the Best Debt Counsellor

Published by The National Debt Review Center on July 18, 2022July 18, 2022

In this article, we share the best tips on how to find a good and reputable debt counsellor when you need one as well as share the most kept industry secrets and tips that will help you through this journey.

Table of Contents

How to Find and Choose the Best Debt Counsellor

A debt counseling business is becoming more and more necessary for consumers to help them with their debt issues. It’s crucial that you choose the correct debt counselor to assist you in completing this procedure successfully and in order to achieve debt freedom because this commitment could last up to 60 months.

Here are some tips to help you make the proper decision:

The debt counsellor needs to be able to fully describe the debt counselling procedure. Professional debt counsellors must register with the NCR in order to practice, and they are supposed to offer accurate and useful information about the debt counseling procedure. In order to guarantee that South African consumers are given ethical assistance with paying off their debt, the National Credit Act (NCA) implemented debt counseling as a legitimate and strictly regulated debt solution in 2007.

Debt counsellors must safeguard your financial and personal data. Your personal and financial information must always be kept private by debt counselors. Verify that the debt counselor you are considering hiring has security precautions in place, that client information is kept completely secure, and that it is not provided to third parties.

Costs of debt counselling must be explained. Debt counselors are permitted to charge a variety of fees related to the debt counselling process, but they must adhere to the NCR’s specified pricing rules. The NCR states that debt counselors may charge an application fee for debt counselling, a cost for debt restructuring or “debt counselling,” legal fees, and a monthly fee for after-care services. Before you join up, you are free to ask the debt counsellor about their price schedule/fees, and they must be able to give you the right answers before you make any commitments.

Debt counsellors must be registered with the National Credit Regulator. According to the National Credit Act (NCA), all debt counsellors are required to register with The National Credit Regulator. Debt counsellors will have a registration number, which can be verified by contacting the NCR on 0860627627 or on the Register of Registrants.

Debt Counsellors must work with a reliable and registered payment distribution agency. Once your debt has been restructured, debt counseling organizations are legally prohibited from paying your creditors on your behalf. Instead, they must employ a Payment Distribution Agency (PDA) that is registered with the National Credit Regulator.

Debt counselors need to be accessible to help with any questions or problems that may come up. If you run into any problems while going through the procedure, a debt counseling organization should be able to help. Throughout your debt counseling journey, confirm that your debt counselor has the tools and capability to respond to questions and requests for information.

Know Exactly what is Debt Counselling and weigh the Advantages and Disadvantages of Debt Counselling before you make your initial consultation.

Watch the below video or visit this page to learn more about Debt Counselling.

Apply for Debt Counselling

Once you have decided to apply for Debt Counselling.

Complete the below form for your free assessment or click here to download the PDF version.

Application by Consumer for Debt Review (FORM 16)

In terms of section 86(1) of the National Credit Act No. 34 of 2005

Step 1 of 5

Applicant details: If you are married in community of property, both spouses must apply jointly.
Main (1st) Applicant
Title*
Initials*
Identity Number*
Full Names & Surname*
Gender*
Ethnic Group*
Marital Status*
Mobile Number*
Email Address*
Address*
Province*
Postal Code*
Owner/Tenant:*
Period at Address:*
Number of dependents
Age of dependants
Separate by commas
Next of Kin Full Names*
Next of Kin Contact Number*
Next of Kin Email Address*
2nd Applicant (SPOUSE)
Title*
Initials*
Identity Number*
Full Names & Surname*
Gender*
Ethnic Group*
Marital Status*
Mobile Number*
Email Address*
Address*
Province*
Postal Code*

Declaration*
I declare as follows
1. I undertake to comply with all requests from the debt counsellor to assist him/her to evaluate my state of indebtedness and to investigate the prospects for responsible debt restructuring. I consent to The National Debt Review Center obtaining my credit record from any/all registered credit bureaus and any other registers which may contain any of my credit information.
2. I undertake not to enter into any further credit agreements other than a consolidation agreement, with any credit provider until one of the following events have occurred: The Debt Counsellor rejects my application; or The Court determines that I am not over-indebted; or All my obligations under credit agreements as re-arranged are fulfilled.
3. I understand that I MUST NOT SIGN ANY DOCUMENTS whatsoever that I receive from any credit provider and shall make no promises, either verbally or in writing, to any of my credit providers.
4. I undertake not to hand over any of my assets to debt collectors unless I have first discussed the matter with The National Debt Review Center.
5. I confirm that the information contained in this document is to the best of my knowledge true and correct.
6. I declare that the debt review process has been explained to me and I understand that:
  - The debt remains my responsibility and that I must continue making payments to all my credit providers every month notwithstanding the fact that I have applied for debt review. Accounts from service providers and accounts in which legal action has commenced cannot form part of the debt review process and that I am personally responsible for paying them.
  - I must open a new banking account (savings) and I must arrange for my salary to be paid into the new account. I understand that if I fail to do so, the banks may deduct monies from my account and The National Debt Review Center will not be able to assist in obtaining a refund of monies taken.
  - I must provide proof of insurance on motor vehicle(s).
  - The initial repayment amount calculated by The National Debt Review Center. may not be sufficient for my credit providers and they may request a higher amount. The National Debt Review Center. may, therefore, contact me with a request for an increase in the repayment amount.
  - I understand and accept the Debt Counselling Fee Structure and understand that my first installment of the debt re-arrangement plan (or part thereof) will be payable to The National Debt Review Center. for services rendered.
  - I understand my debt review application must be finalized with a court order and I authorize The National Debt Review Center.to instruct an attorney to appear in court on my behalf and I accept full responsibility for the settlement of the legal fees as set out below.
  - I understand that if I default on any obligation in terms of the debt re-arrangement plan agreed upon with credit providers, such credit providers may terminate the debt review process and then enforce, by litigation or other judicial processes, any right or security they may have under my credit agreements. I also understand that The National Debt Review Center. may withdraw from my debt review in the event that I default on payments or fail to comply with any reasonable requests. I understand that I will then be required to pay the original installments and interest rates; reduced installments and interest rates will be canceled and credit providers can then proceed with legal action against me that may result in judgment being taken and repossession of my assets.
7. I understand that a clearance certificate will only be issued after The National Debt Review Center. is satisfied that I have fulfilled all debt obligations under debt review.
8. I understand that there is a duty on me to inform The National Debt Review Center. of any changes in my residential address, telephone numbers, employer and income.
9. I indemnify all employees and nominees of The National Debt Review Center. against any claim that may be instituted against it or them arising from any act or omission by such person appointed by The National Debt Review Center. or its nominee in the lawful execution of the terms and conditions of this agreement entered into by myself, and confirm that The National Debt Review Center. shall not be liable for any damages suffered by me resulting from any act or omission of whatsoever nature, however arising. I hereby acknowledge that all lawful actions taken by The National Debt Review Center.under its powers under this agreement are tacitly ratified by me, and I will be bound by such agreements as principal debtor.
10. I/We the Consumer(s) authorise my/our debt counsellor and it’s staff and/or agents to
  process, store and keep my/our personal information that has bearing to my/our debt review
  and whilst I/we do explicitly give my/our consent to our debt counsellor to do so, I/we
  understand and accept that my/our debt counsellor is obliged to act within the parameters
  of the Protection of Personal information Act (“POPI”).
Debt Counselling Fee Structure

All fees are regulated by the National Credit Regulator (NCR). We subscribe to the fee guidelines as prescribed by the NCR. Fees payable are as follows (all amounts and percentages quoted exclude VAT):
1. An Application Fee of R50.00 & Administration Fee of R300 per debt counselling consultation.
2. A Restructuring Fee of an amount equivalent to the first installment of the debt re-arrangement plan to a maximum amount of R8,000 (excl VAT) per single application. Should you wish to withdraw from the debt review process, there will be a cancellation fee as set out in the NCR guidelines payable by you.
3. A Restructuring Fee of an amount equivalent to the first installment of the debt re-arrangement plan to a maximum amount of R9,000 (excl VAT) per joint application. Should you wish to withdraw from the debt review process, there will be a cancellation fee as set out in the NCR fee guidelines payable by you.
4. A monthly Aftercare Fee of 5% (excl VAT) of the monthly installment of the debt re-arrangement plan up to a maximum of R450 (excl VAT) payable in every month after month 2 in which aftercare services are rendered.
5. To the Payment Distribution Agency (PDA): A monthly Payment Distribution Fee for each amount distributed in respect of each credit agreement included in the consumer’s debt re-arrangement plan.
6. To Attorneys firm: A legal fee of an amount equivalent to the first installment to a maximum of R8,000 (excl VAT) per single application and R9 000 (excl VAT) per joint application to start the process to obtain a court order forcing your credit providers to abide by the terms of the debt re-arrangement plan. The deposit is payable in the 2nd month of the application.
Signed at(Place):*
Date*
MM slash DD slash YYYY
Name of Main Applicant:*
Signature of Main Applicant:*
Name of 2nd Applicant:
Signature of 2nd Applicant:
TERMS AND CONDITIONS The Consumer agrees that the terms and conditions hereunder shall apply.
1. The terms and conditions as set out hereunder are governed by the National Credit Act and Regulations (the “NCA) and National Credit Regulator (NCR). The NCR has the authority to issue NCR Guidelines which can be amended from time to time. The Consumer indemnifies the Debt Counsellor (its directors, shareholders, employees and consultants) against any damages of whatsoever nature and howsoever arising from changes in the said NCA or NCR Guidelines from time to time.
1. This debt review application is in terms of the NCA and the Debt Counsellor is fulfilling the statuary duty as an unbiased party between the consumer and the credit providers;
1. The Debt Counsellor is entitled to suspend the debt counselling services, as per the prescribed form set out in the NCR Withdrawal Guidelines, if the Consumer fails to:3.1. Comply with the reasonable requests of the Debt Counsellor;3.2. Pay the prescribed fees in terms of the NCR Debt Counselling Fee Guidelines.
2. Upon the suspension of debt counselling services by the Debt Counsellor pursuant to the provisions of clause 3 the Consumer hereby acknowledges that he/she understands that4.1. There is a risk of credit providers terminating the debt counselling process;4.2. He/she may not incur further debt; 4.3. He/she cannot withdraw from the debt counselling process after a Form 17.2 (declaration of over-indebtedness) has been issued; 4.4. Transferring to an alternative debt counsellor is subject to the payment of all outstanding fees of the current Debt Counsellor.
3. In the event of the debt counselling services being suspended by the Debt Counsellor in terms of paragraph 3, the consumer hereby indemnifies and holds the Debt Counsellor (its directors, shareholders, employees and consultants) harmless against:5.1. Termination by credit providers; 5.2. All claims, losses, costs and expenses incurred or suffered by the Consumer arising from any claim/s instituted by any third party in relation to or in connection with the debt counselling process.
4. A consumer cannot withdraw from the Debt Counselling process after the Form 16 (application form) has been signed. The debt counsellor can only reject the application should it be found that the consumer is NOT over-indebted. Proof thereof will have to be submitted to the NCR in order to clear the debt counselling listing from the consumer’s credit profile as set out in NCR Withdrawal Guideline.
5. The debt counsellor is obligated to refer the debt re-arrangement proposal to a Magistrate’s Court or to the Tribunal for a court order subject to payment of legal fees.
6. A court order can be rescinded if the consumer is no longer over-indebted or if all debts have been settled in full and the Debt Counsellor has issued a clearance certificate. An estimate of costs will be provided to the consumer by the Debt Counsellor upon request of a rescission application.
By signing this declaration the consumer confirms that he/she understands the implications and consequences of debt review.
Please Sign*
Phone
This field is for validation purposes and should be left unchanged.

Our final tips

Don’t ever make a direct payment to a debt counsellor’s bank account or his or her company/business account. Only make payments through a registered Payment Distribution Agency (PDAs), which are NCR-registered and governed, will receive and distribute all of your monthly payments in accordance with the debt review process as regulated by The National Credit Act.

Do some online research on the debt counselling company you’ve picked. Visit the website of the debt counselor. Check out service ratings on platforms like hello peter or google reviews. Search Google Maps to confirm the address. If your debt counsellor does not come up under any of these searches, you may very well be dealing with a scammer. Rather be safe than sorry and try another Debt Counsellor.

Before you sign anything, check the documents out and ask any questions. A registered, reputable debt counsellor won’t mind when you ask as many questions as necessary to feel comfortable. Do not sign anything unless you are perfectly satisfied with it, as you should with any financial documentation. If you ever need clarification on anything, you may always consult the Regulator.

Verify that the debt counselor is billing you the appropriate fees in accordance with the NCR. These are capped and given to the debt counsellor as payment for all of their services. —— See the debt counselling fee structure.

Have direct contact with your debt counsellor.

You can contact us on 0410125036 should you need more information or further assistance.

How to Find and Choose the Best Debt Counsellor

How to Find and Choose the Best Debt Counsellor

Know Exactly what is Debt Counselling and weigh the Advantages and Disadvantages of Debt Counselling before you make your initial consultation.

Apply for Debt Counselling

Application by Consumer for Debt Review (FORM 16)

Step 1 of 5

Applicant details: If you are married in community of property, both spouses must apply jointly.

Main (1st) Applicant

2nd Applicant (SPOUSE)

EMPLOYMENT DETAILS

Main (1st) Applicant

2nd Applicant (SPOUSE)

HOUSEHOLD LIVING EXPENSES

DEBT OBLIGATIONS

Our final tips

The National Debt Review Center

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Leave a Reply Cancel reply

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South Africa’s 1st Debt Installment Calculator for Debt Review Clients

How to Find and Choose the Best Debt Counsellor

How to Find and Choose the Best Debt Counsellor

Know Exactly what is Debt Counselling and weigh the Advantages and Disadvantages of Debt Counselling before you make your initial consultation.

Apply for Debt Counselling

Application by Consumer for Debt Review (FORM 16)

Step 1 of 5

Applicant details: If you are married in community of property, both spouses must apply jointly.

Main (1st) Applicant

2nd Applicant (SPOUSE)

EMPLOYMENT DETAILS

Main (1st) Applicant

2nd Applicant (SPOUSE)

HOUSEHOLD LIVING EXPENSES

DEBT OBLIGATIONS

Our final tips

The National Debt Review Center

0 Comments

Leave a Reply Cancel reply

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