Need a debt counsellor in South Africa? Choose one registered with the National Credit Regulator (NCR), who follows regulated fees and uses approved payment agencies. A good counsellor will assess your finances, negotiate with creditors, and create a legally binding repayment plan. Look for experience, transparency, and solid client reviews. You can switch counsellors, but always research first.
DebtBusters is South Africa’s largest, award‑winning debt counselling provider, offering trusted, end‑to‑end support.
Debt counselling is a legal solution that helps South Africans who are overindebted to manage and repay what they owe through a structured plan. A registered debt counsellor works with you to assess your finances, negotiate with creditors, and guide you through the process.
Choosing the right debt counsellor is key to your financial recovery. This article shares expert tips to help you make an informed, confident choice.
The role of a debt counsellor
A debt counsellor is a legally registered professional, appointed under the National Credit Act (NCA) to support overindebted consumers.
Their role combines financial planning, mediation, and legal protection.
Once appointed, a debt counsellor can:
-
Assess your income, expenses, and debt levels to determine overindebtedness
-
Notify creditors and credit bureaus that you’re under debt counselling, also known as debt review
-
Negotiate a restructuring plan based on your budget
-
Submit a plan to a magistrate or the National Consumer Tribunal. The aim is to obtain a legally enforceable court order to make the debt restructuring plan legally binding and enforceable.
-
Monitor payments to confirm compliance and issue a clearance certificate on repayment of all unsecured debt.
As a financial intermediary, debt counsellors ease some pressure on you and provide consumer protection – while under debt counselling, your creditors are not allowed to take action against you, or even contact you.
Because debt counsellors handle sensitive personal and financial information, it’s vital to appoint a registered, reputable debt expert who will treat you fairly and ensure your rights are protected.
Choose someone who has not only the necessary credentials, but also a solid reputation in the industry. Research the debt counsellor of your choice, pay attention to customer reviews, and ensure they are registered with the National Credit Regulator (NCR).
The importance of having a qualified debt counsellor
Only NCR-registered debt counsellors are permitted to administer debt counselling.
They must understand the NCA, compliance regulations, and court procedures to guide you effectively.
Choosing the right debt counsellor
In addition to being suitably qualified, a good debt counsellor will have a professional, ethical approach. They should prioritise your financial wellbeing and offer unbiased guidance. They should also be transparent about their fees and services, and be able to answer all your questions about the debt counselling process.
Use this checklist of key attributes when choosing a debt counselling company:
Are they registered with the NCR?
You can check this by requesting the debt counsellor’s registration number and verifying it on the NCR website, or by searching for the company by name on the NCR database.
Are their fees in line with NCR guidelines?
Debt counsellors may set their own fees, but these must be aligned with the fee structures stipulated by the NCR.
Fees will apply for your application, debt restructuring, creditor rejection of a restructuring proposal (should this occur), aftercare services, and any legal issues that may arise. These costs are typically included in your restructured payment amount, which the NCR stipulates should be affordable for you.
Ask for a clear, itemised breakdown of the fees, and ensure your debt counsellor can answer any questions you may have.
Do they use a reputable payment distribution agency?
By law, debt counselling companies are not allowed to make payments to credit providers on your behalf once your debt has been restructured.
Instead, they must use a payment distribution agency (PDA) that is registered with the NCR. The main function of a PDA is to distribute funds owed to multiple creditors. It must ensure timely, accurate payments, and handle the complexity of multiple repayment schedules.
Do they prioritise privacy and trust?
Because the debt counselling process requires you to share confidential financial information, the relationship between you and your debt counsellor should be based on trust.
Your debt counsellor should keep your data private and secure under the Protection of Personal Information Act (POPIA).
Your debt counsellor should also have sufficient security measures in place to ensure external parties cannot access your information.
Do they have a good reputation?
Conduct some background checks before you commit to working with a debt counsellor.
Need debt counselling or consolidation?
Explore DebtBusters' solutions for reducing your interest rates and unlocking cash.
Find out moreVisit the company’s website and compare its offering to that of its competitors. Look for media coverage and industry awards to assess reliability.
Do they have good reviews?
Assess what people have said about the company on Hellopeter and other online review platforms. Has the company received good reviews and testimonials? Have people been satisfied with the service received?
If you have any doubts, don’t sign up. Keep looking for a well-regarded company with references you can check.
Do they offer additional financial support?
Check whether the company offers additional support services, which may include, for example, financial education, help with budgeting, and access to your credit report.
DebtBusters offers debt management, debt settlement, and insurance services in addition to debt counselling.
Can you change from one debt counsellor to another?
Yes – follow these steps to make the transition easier:
-
Clarify your reasons for wanting a change – are you not getting the support you need?
-
Compare alternatives based on credentials, experience, fees, and client reviews. Look for feedback that indicates the new company you choose can address your specific needs.
-
Speak to prospective debt counsellors to evaluate trust, transparency, and processes. Look for a debt counsellor who listens, provides credible answers to your questions, and makes you feel comfortable.
-
Review fee structures to ensure you get value for money and there are no hidden charges. Look for a debt counsellor whose fees are transparent and who can provide a clear breakdown of the costs.
-
Choose the debt counsellor you feel confident will support your debt-free journey.
Questions to ask a prospective debt counsellor
Before committing, ask your prospective debt counsellor:
-
How long does the debt counselling process usually take?
-
What documents will I need to provide?
-
What will my new monthly debt instalment be?
-
Can I see a sample repayment plan?
-
How will you negotiate and communicate with my creditors?
-
What happens if my financial situation changes?
-
Will I receive regular updates from you?
Clear communication builds trust and helps avoid surprises later.
A good debt counsellor will empower you with knowledge instead of overwhelming you with jargon. You deserve to understand the roadmap on your journey to financial freedom.
Choose DebtBusters to help you on your debt journey.
DebtBusters is an award-winning debt counselling company with a successful track record in helping overindebted South Africans become debt-free.
For more information on our debt counselling process and services, contact us or request a free call-back from one of our consultants by filling in the form on our website.
Let us call you back
Fill out our form below to get a free call-back from one of our consultants to discuss your debt situation.
Jump to form
