How debt review works
What is debt counselling?
By Lerato Molefe · 6 min read · Updated 24 June 2026
Debt counselling is South Africa's formal debt-relief process under the National Credit Act, and it is exactly the same thing as debt review, where a registered counsellor assesses your finances, negotiates one reduced monthly payment with your creditors, and obtains a court order that protects you from legal action while you repay your debts.
The person running it is a debt counsellor, a professional registered with the National Credit Regulator (NCR). They act for you, not your creditors.
This page explains what a debt counsellor does, how to tell good ones from bad, what it costs and how it differs from simply getting financial advice.
What a debt counsellor does
A debt counsellor is a registered professional who manages the debt review process on your behalf. Their job is to:
- Assess whether you are over-indebted using a proper budget.
- Notify your creditors and the credit bureaus that you have applied.
- Negotiate lower instalments and interest with each creditor.
- Take the restructuring plan to a magistrate's court for an order.
- Set up your single monthly payment through a payment distribution agent.
- Issue your clearance certificate when you finish.
They are not a lender, a debt collector or a consolidation company. They work for you under the National Credit Act.
Debt counselling vs debt review vs financial advice
People use 'debt counselling' to mean two different things, so be clear:
- Formal debt counselling (debt review) is the legal NCA process with court protection. This is what NCR-registered debt counsellors do.
- General financial or budgeting advice is informal help with money and has no legal status.
When you sign up with an NCR-registered debt counsellor, you are entering the formal process. Always check the registration on ncr.org.za first.
What it costs
Debt-counselling fees are regulated maximums set by the NCR and added to your monthly payment, not paid separately upfront beyond the R50 application fee:
| Fee | Regulated maximum |
|---|---|
| Application fee | R50 (upfront) |
| Admin fee | Up to R300 |
| Restructuring fee (once-off) | Up to R8,000 (R9,000 for couples in community of property) |
| Monthly after-care fee | 5% of instalment, max R450/month |
| PDA fee | R15 per payment over R500 |
Be wary of any counsellor who is vague about fees. The 2026 NCR rules require clear upfront disclosure.
Is debt counselling right for you?
Debt counselling suits you if your debt repayments are more than you can afford and you have a regular income to fund a single reduced payment. It gives legal protection and stops the juggling.
It is less useful if you only have a temporary cash-flow problem, or if most of what you owe is not credit covered by the NCA. Talk to a registered counsellor for a free assessment before committing - reputable firms like DebtBusters or Meerkat offer one, but so do many smaller registered counsellors.
Frequently asked questions
What is debt counselling in simple terms?
It is a legal process where a registered debt counsellor restructures your debts into one affordable monthly payment and gets a court order protecting you from creditors. It is the same as debt review.
Is debt counselling the same as debt review?
Yes, exactly the same. The National Credit Act calls it debt review; in everyday use people call it debt counselling. Both are run by a debt counsellor.
What does a debt counsellor do?
A debt counsellor assesses your budget, notifies your creditors, negotiates lower payments, gets a court order, sets up your single monthly payment and issues your clearance certificate when you finish.
How much does debt counselling cost?
Fees are regulated maximums set by the NCR: a R50 application fee, admin up to R300, a once-off restructuring fee up to R8,000, and a monthly after-care fee of 5% of your instalment capped at R450. They are added to your monthly payment.
Can a debt counsellor remove my debt?
No. A debt counsellor restructures your debt so you can afford it; they do not write it off. You still repay everything, usually over a longer term at reduced interest.
How do I find a registered debt counsellor?
Search the National Credit Regulator register at ncr.org.za. Only deal with a counsellor whose NCR registration you can verify there.
