Debt counselling

Yes, you can. Debt counselling is designed for South Africans who are struggling with debt and need debt relief, including those with poor credit scores. There’s no minimum credit score required to qualify.

In fact, applying for debt counselling when you have a low credit score can help you:

• Avoid further damage to your credit profile

• Stop creditors from contacting you or taking legal action against you

• Lower your monthly repayments through negotiated interest rates

• Work towards a debt-free future with a structured repayment plan

Debt counselling usually takes between two and three years to complete. It depends on how much debt you have and how much you can afford to repay each month.

The process is designed to be manageable and affordable, allowing you to:

• Pay off all your unsecured debts (such as loans, credit cards, and store accounts)

• Make one reduced monthly payment that fits your budget

• Avoid legal action and asset repossession

• Work towards financial stability at your own pace

The good news? You can complete the process sooner if your financial situation improves or if you’re able to make extra payments.

No, you can’t take out new credit while under debt counselling. This is a legal condition of the process, enforced by South Africa’s National Credit Act.

While you’re under debt counselling:

• Your credit profile is flagged, which prevents lenders from extending new credit to you

• You are legally protected from taking on more debt, helping you focus on repaying what you already owe

These safeguards help you avoid falling deeper into debt.

Once you’ve successfully completed the debt counselling process and received a clearance certificate, your credit record is updated, and you can start rebuilding your credit profile responsibly.