Benefits of Debt Counselling

For South African consumers who find themselves overburdened by debt, Debt Counselling can prove to be a life changing solution. At Debtco Group, we know that your debts do not have to define you and control your financial future. Our National Credit Regulator approved Debt Counselling service is transparent and tailored to your needs and budget, helping you to fight and overcome debt for good.                 

There are numerous benefits of Debt Counselling that help you as the consumer to better manage your finances and combat your debt. Debt Counselling allows you to pay back your outstanding and existing debts in one affordable and consolidated monthly payment. Once we have established that you are over-indebted, our esteemed team of financial consultants and Debt Counsellors will consider your income and basic living expenses, in order to restructure your repayment amount to better suit your financial circumstances.

During the Debt Counselling process, you as the consumer are protected from legal action such as asset repossession, a very real threat with the potential to cause plenty of added and unwanted stress to your life. Without the constant fear of legal action and harassing calls or emails from your creditors taking its toll, you’re free to focus all your attention on improving your financial situation. Our Debtco Group team will work closely with you towards achieving a future free of financial strain and debt related stress, allowing you to start over fresh.

Our Debtco Group team of experienced and professional Debt Counsellors will deal with your creditors on your behalf, to negotiate lower instalments and reduced interest rates. During this time, we can also ensure that you were in no way a victim of reckless lending, which has been indicated to be the case with about 40% of over-indebted South African consumers.  

You will still be paying back your existing debts in full, however you won’t need to deal with your creditors once we have informed them that you are under Debt Counselling. Unexpected changes in income or unplanned life events can cause financial strain that quickly spirals out of control, while other times becoming over-indebted happens over a long period of time – either way, debt does not have to leave you distressed and hopeless.

Other benefits of Debt Counselling include gaining better control of your finances, by only paying back one manageable payment each month, which covers all of your existing debts and does not leave you broke. Debt Counselling has proven successful for many consumers facing debts that exceed their income or impact their ability to make it from one month to the next. The stress of being over-indebted can affect many areas of your life, taking a toll on your mental wellbeing, work performance and relationships.

Once you have successfully repaid all your existing debts while undergoing the Debt Counselling process, you will be issued with a Debt Clearance Certificate, and your credit score with gradually start to improve. Once you are cleared of your debts, you will be equipped with budgetary and financial advice from Debtco Group, allowing you to live life to the fullest. Contact us for a free assessment today and look forward to a renewed outlook on your finances.

The real benefits of debt counselling

For someone who is over-indebted, debt counselling (debt review) offers concrete, legally-backed advantages that self-managing your debt simply cannot. Here is what you actually gain:

• Lower monthly repayments. Your debt counsellor negotiates reduced instalments and interest, restructured around what you can genuinely afford after living costs.
• One simple payment. Instead of juggling many creditors, you make a single monthly payment to a registered Payment Distribution Agent, which pays each creditor for you.
• Legal protection for your assets. As long as you keep to the plan, creditors cannot take legal action or repossess the home and car included in your review.
• The calls and letters stop. Creditors deal with your debt counsellor instead of hounding you.
• A clear finish line. You follow a structured plan to a defined end, and receive a clearance certificate when your debts are settled.
• Regulated, capped fees. Costs are set by the National Credit Regulator, no hidden charges.

Debt counselling vs. struggling on alone

Trying to manage serious over-indebtedness without help usually means paying the loudest creditor, missing others, and watching interest pile up. Debt review replaces that stress with one affordable payment and legal breathing room. For an honest look at the trade-offs too, read the disadvantages of debt counselling so you can weigh both sides.

Who benefits most from debt counselling?

Debt review helps most if you are borrowing to cover repayments, missing instalments, or worried about losing your home or car, but you still have a regular income to fund a restructured plan. A free assessment tells you clearly whether it is right for you.

Frequently asked questions

Will debt counselling hurt my credit score?
You are flagged as under debt review while the process runs, and that flag is removed once you complete it and receive your clearance certificate, after which you can rebuild.

Can I keep my home and car?
In most cases, yes, protecting them is one of the main benefits, as long as you keep to your plan.

Ready to feel the benefits for yourself?

Debtco Group (NCRDC 3277) has helped South Africans reduce their repayments and protect what matters since 2010. Call a registered debt counsellor on 021 007 1422 or request your free, no-obligation assessment. Learn how debt review works.