Debt counselling is one of the debt relief measures available in South Africa, introduced by the National Credit Act (NCA) in 2007. Debt counselling is intended to assist over-indebted consumers struggling with debt through budget advice, negotiation with credit providers for reduced payments and restructuring of debts.

This is a great process for anyone with an income and struggling to meet their monthly obligations.

Once declared over indebted and accepted into debt counselling the following will happen:

• You will be protected from legal action for a period of 60 days from the day of application and after the arrangement has been concluded, as long as you pay according to the new arrangement;

• All your creditors will have to stop calling you and will liaise with your debt counselor;

• You will be listed with the Credit Bureau as being under debt counselling.

Debt counselling is one of the debt relief measures available in South Africa, introduced by the National Credit Act (NCA) in 2007. Debt counselling is intended to assist over-indebted consumers struggling with debt through budget advice, negotiation with credit providers for reduced payments and restructuring of debts.

This is a great process for anyone with an income and struggling to meet their monthly obligations.

Once accepted under debt counselling you will pay one installment which will then be distributed to your credit providers by a Payment Distribution Agent (PDA). The PDA is also responsible for the provision of monthly statements to consumers and payment schedules to debt counsellors, employers and credit providers, as well as attending to queries from the respective parties.

Your debt counsellor will work out how much of your income should be set aside for basic living expenses, and what you can afford to pay towards your debts each month. Then they will draw up a new, more affordable repayment plan for you.

Next, they will negotiate with your creditors to extend the amount of time you have to repay your debts and to have your payments reduced, so you can realistically afford them.

If all of your creditors agree to the repayment proposal, your debt counsellor will then get a consent order from the magistrate’s court or National Consumer Tribunal (NCT).

All of NDA’s professional debt counsellors are highly qualified and registered with the National Credit Regulator (NCR). So you can rest assured that you will be receiving the best service possible.