How will Debt Counselling affect those in need of debt counselling?

Once the client's DC has notified creditors of their application for debt review, creditors can not take any further legal action against them or repossess any of their assets for a period of two months.

The client will be required to pay a reduced, affordable instalment, without necessarily extending the debt repayment period.

The client will be able to continue to pay for their basic living expenses.

The fees paid to the DC are included in their repayment plan (except the R50 application fee).

While they have outstanding debt, the client will be listed at all Credit Bureaus as "under debt review". However creditors may not initiate new black listings against them.

During the debt review process, the client will not be able to apply for any additional credit other than debt consolidation loans.

Once the client has received their debt clearance certificate, their DC will be able to remove them from Credit Bureau listings. This will enable them to qualify for credit again.

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