Why Debt Counselling?

Let us compare the four options most over-indebted consumers are considering.

Note that making debt in order to pay off other debt is not an option as it only increases over-indebtedness.

Debt Counselling

✔ Legal protection against repossession.
✔ Regulated industry with maximum fees.
✔ Credit providers must provide reasonable concessions.
✔ Single instalment distributed by a NCR registered PDA.
✔ Court order binds credit providers to the agreement / forces concessions.

Debt Mediation

✘ No legal protection for assets.
✘ Unregulated industry and known for excessive fees.
✘ Credit providers may refuse proposals and proceed with legal action.
✘ Distribution not done in terms of NCA by NCR registered PDA's.
✘ Court cannot force credit provider to provide concessions.
✘ Act of insolvency.


✘ Lose all your assets.
✘ High cost (20% of total debt + legal fees).
✘ Requires further legal process in order to be cleared.
✘ May not be director of company or member of a CC.
✘ Around 10 years to be rehabilited.
✘ Court may refuse - especially if debt counselling is a viable option.

Self Negotiation

✘ No legal protection for assets.
✘ Credit providers may refuse any offer.
✘ Credit providers may decide to proceed with legal action even after accepting repayment offers.
✘ Instalment may be reduced, but interest rates will normally stay high and debt may likely increase drastically.
✘ Act of insolvency.

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