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Debt can feel overwhelming, but debt counselling offers a way out. Learn more about the debt counselling process and who qualifies for it, then schedule a free one-on-one consultation with our experienced debt counsellors to see how this solution can help you clear your debts.

What is Debt Counselling and Why Was It Introduced?

Debt counselling is a formal, legal debt relief measure established by South African law. Debt counselling was introduced to assist over-indebted consumers through the debt review process as per Section 86 of the National Credit Act (NCA) 34 of 2005. The process was introduced in recognition of South African consumers’ debt problem. The average household debt-to-disposable-income ratio is about 72%, one of the highest in the world! This means that, on average, 72% of the monthly income of a South African household goes towards repaying their debt.

Is debt counselling the same as debt review? Yes!

What are the Benefits of Debt Counselling?

Debt counselling, guided by a reputable debt counsellor registered with the National Credit Regulator (NCR), can significantly improve your debt situation and overall finances. This includes:


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    Lowering Your Monthly Payments

    By negotiating with your creditors to restructure your debt, we can help you reduce your monthly payments. This gives you breathing room, frees up cash, and makes it easier to cover essential expenses.

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    Decreasing Your Interest Rates

    When our experienced team negotiates with your creditors, it often results in lower interest rates, decreasing the overall cost of your debt.

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    Enhancing Your Cash Flow

    Lower payments and interest rates can improve your cash flow, reducing financial pressure and improving your financial stability.

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    Consolidating Your Debt

    Debt restructuring can combine multiple debts into a single, more manageable payment, simplifying the repayment process.

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    Stopping Collection Calls from Your Creditors

    Once you enter debt review, you are legally protected from your creditors and they must stop harassing you. See how debt review protects you.

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    Protecting Your Assets from Legal Action

    While under debt review, creditors are restricted from taking legal action against you, protecting assets like your home and car.

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    Improving Your Money Habits

    One of the most significant benefits of debt counselling is that it helps you change the fundamental issues that caused you to become over-indebted in the first place. A good debt counsellor will coach you on how to monitor and manage your spending, pay with cash, and live within your means — all invaluable skills in the long run.

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    Focusing on Debt Elimination

    Since debt counselling entails you not borrowing more money, it helps you gradually move out of the debt spiral. Once you are debt-free, you can start building wealth through savings and investments, ensuring a dignified retirement.


How Does Debt Counselling Work?

Debt counselling can help you get a fresh start, debt-free. We have a detailed run-down of the five-step debt counselling process explaining what to expect at each step, what you’ll need, and how long it takes. In short, you’ll connect with our accredited debt counsellors, complete our free debt assessment, and receive a free credit report within minutes. Once you’ve completed this debt counselling session and reviewed our expert’s proposals, you’ll be able to enter debt review. You will be placed under debt review, and a repayment plan will be negotiated with your credit providers. Your repayment plan will be made an order of the court until your credit record is clean, protecting your assets from credit providers. Your debt counsellor will be with you every step of the way and fulfil a key role in your debt review journey.

How Long Will Debt Counselling Last?

Typically, debt counselling lasts between 3-5 years. However, the duration depends on a number of factors, including the amount of debt you have and how much you can pay monthly. If you are committed to paying more, you can finish sooner.

At Debt Sage, we encourage our clients to pay off their debt as quickly as possible. There are no penalties for early repayment. In fact, we support our clients in aggressively paying off their debts so they can begin their journey towards savings, investments, and wealth-building sooner.

No matter what you believed when you took out your loans, now is the time to get serious about getting rid of them. It is possible; we have helped many realise their dreams. Read more about our clients’ stories and what they say about Debt Sage.

Is Debt Counselling For Me?

Use our free Debt Solution Finder to get a personalised recommendation!

People who let their debts accumulate before seeking advice often find that:

  • Their credit cards are maxed out;
  • Their financial situation has spiralled out of control;
  • They cannot borrow from anyone else;
  • It takes much longer to repay what they owe.

Speak to our certified debt counsellors to see if you qualify for debt counselling. They will:

  • Never judge you or make you feel bad about your situation;
  • Always be happy to talk to you, no matter the size of your problem;
  • Find ways to manage your debts, even if you think you have no spare money;
  • Suggest strategies to deal with debts that you might not be aware of.

By the end of the debt counselling session, you will feel empowered, knowing there are options available and that you are not alone.


How Debt Sage can Help You with Debt Counselling

As a small team, we offer personalised service, contrary to what you might experience when dealing with a large debt counselling company. We’re specialists, we are independent and transparent, we have deep experience, and we will treat you with the utmost confidentiality.

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