How debt review works
What is debt counselling?
By DebtReviewZA editorial team · 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 follow the NCR fee guideline (rand amounts exclude VAT). The R50 application fee and R300 administration fee are paid upfront and in full:
| Fee | Regulated maximum |
|---|---|
| Application fee | R50 (upfront) |
| Admin fee | R300 (upfront) |
| Restructuring fee (once-off, month one) | The distributable amount or R8,000, whichever is lower (R9,000 if married in community of property) |
| Monthly after-care fee (from month three) | 5% of the distributable amount, max R450 |
| Reckless lending assessment (only if done) | R1,500 |
Be wary of any counsellor who is vague about fees. The NCR says all applicable fees must be disclosed to you in writing.
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 follow the NCR fee guideline (rand amounts exclude VAT): a R50 application fee and R300 administration fee, both paid upfront; a once-off restructuring fee of the distributable amount or R8,000, whichever is lower (R9,000 if married in community of property), due in month one; and a monthly after-care fee of 5% of the distributable amount, capped at R450, from month three. Reckless lending, Tribunal and attorney fees apply only in some cases.
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.
