How debt review works
Benefits of debt counselling
By Lerato Molefe · 5 min read · Updated 24 June 2026
The benefits of debt counselling are real and practical: it combines your debts into one reduced monthly payment, the National Credit Act protects you from creditors and repossession while you pay, interest and instalments are usually negotiated down, you keep your car and home, and you reach a clear finish with a clearance certificate.
For someone who is over-indebted, these benefits often outweigh the downsides of a temporary credit flag and added fees.
This page sets out each benefit plainly. Read it alongside the disadvantages page so you can weigh both sides before deciding.
1. One affordable payment
Instead of juggling several instalments on different dates, you make one payment each month, calculated from a realistic budget you can actually sustain. A payment distribution agent splits it among your creditors. The mental relief of a single, affordable amount is, for many people, the biggest benefit.
2. Legal protection from creditors
Section 88 of the National Credit Act protects you while you pay your plan. Creditors cannot sue you, list a new default or repossess goods covered by the plan. The harassing calls and letters stop because creditors deal with your counsellor instead. This court-backed shield is something an informal payment arrangement can never give you.
3. Reduced interest and instalments
Your counsellor negotiates with each creditor to lower your instalment and, where they agree, reduce the interest rate. Lower interest means more of your money clears the actual debt rather than feeding interest, which can shorten the overall journey compared with limping along on full contractual terms.
4. You keep your assets
Unlike sequestration, debt review lets you keep your home and car as long as you keep paying. Your secured debts are built into the plan, so you carry on living normally while you work through the debt. This is a major advantage for families who would otherwise risk losing the roof over their heads.
5. A clear finish line
Debt review has a defined end. When your debts are paid, your counsellor issues a Form 19 clearance certificate, notifies the bureaus, and the flag is removed - usually within about 21 business days. You exit with a clean profile and the discipline of having budgeted properly for years.
Benefits vs trade-offs at a glance
| Benefit | Trade-off |
|---|---|
| One affordable payment | Fees added to that payment |
| Legal protection | A credit flag while active |
| Lower interest | Cannot take new credit |
| Keep your assets | Can take several years |
| Clear clearance certificate | Hard to exit early once ordered |
For genuine over-indebtedness, the left column usually wins.
Frequently asked questions
What are the benefits of debt counselling?
One affordable monthly payment, legal protection from creditors and repossession, reduced interest and instalments, keeping your car and home, and a clear court-backed path to becoming debt-free with a clearance certificate.
What are the advantages and disadvantages of debt counselling?
Advantages: one payment, legal protection, lower interest, keeping assets, a defined end. Disadvantages: a temporary credit flag, no new credit, added fees and a multi-year timeline. For real over-indebtedness the advantages usually outweigh the costs.
Does debt counselling lower my interest rate?
Usually, yes. Your counsellor negotiates with each creditor to reduce instalments and, where they agree, the interest rate, so more of your payment goes to the actual debt.
Will I keep my car and house under debt counselling?
Yes, in most cases. Your secured debts are included in the plan and section 88 protects them from repossession while you keep paying. This is a key advantage over sequestration.
Does debt counselling stop creditors calling me?
Yes. Once you are in the process, creditors must deal with your counsellor. The harassing calls and letters generally stop, which is one of the most immediate benefits people notice.
Is debt counselling better than a consolidation loan?
For over-indebted people, often yes. Debt counselling gives legal protection and negotiated lower interest without taking on new debt, whereas a consolidation loan is new credit with no court protection.
