Frequently Asked Questions

What is debt counselling?

Debt counselling is a medium- to long-term process during which you pay a single lower instalment every month. This single payment covers all your debt.

What is a debt counsellor?

A debt counsellor is the person who will be assigned to your case. Debt counsellors are qualified to restructure your debt and arrange that you only pay what you can afford every month. All DebtCare counsellors have received training from top psychologists at the University of Johannesburg’s Centre for Psychological Services and Career Development to support you better during this stressful time.

What is unsecured debt?

Unsecured debt is any debt that has no surety. For example, if you apply for a credit card, the bank doesn’t ask you to put your house down as surety. This means it is unsecured, or they don’t have anything they can take from you in the event that you don’t pay.

Are debt counselling and debt review the same thing?

Before we start the debt counselling process, your debt situation needs to be reviewed. Once the debt review has been completed, we can confirm whether or not you qualify for debt counselling.

What’s the difference between debt counselling and being put under administration?

People who have debt less than R50 000 are normally put under administration. It is a longer and costlier process. Debt counselling aims to get people with greater debt out of debt in the shortest possible time at the lowest possible cost.

What does it mean to be over-indebted?

If someone is over-indebted, it means that their monthly expenses are far greater than their monthly earnings. This results in their not being able to honour all the payment commitments they agreed to.

Can anyone apply for debt counselling?

Anyone who believes they are over-indebted can apply for debt counselling. Our first step is to review your debt status and determine how much debt you have. If you are over-indebted, the debt counselling process begins.

How does bad debt impact my employability?

Showing your employer that you are able to manage your finances is a great indication that you could manage other aspects of work, such as a team or a project. Most companies now conduct credit checks as part of their employment process. If you have defaulted on payments or have judgments against you, it will reflect on the credit report they receive from the credit bureau. This could definitely harm your chances of employment. It is best to seek help sooner rather than later. These records are permanent.

Why should I opt for debt counselling and not debt consolidation?

Debt consolidation only offers temporary relief and will get you into more debt. Not only do you pay a very high interest over a very long time, but you don’t break the bad debt cycle. If you struggle to pay off debt now, you will also struggle to pay off a consolidated loan.

When will debt counselling start to work?

You will experience debt relief immediately. Our first priority is to ensure that you are legally protected from creditors. Within the first five days of being approved, you will receive a provisional repayment plan from DebtCare. You will pay this provisional repayment amount to the National Payment Distribution Association (NPDA). This is to ensure you are protected while we work on your permanent repayment plan. After 60 days of paying your provisional plan, you will seamlessly switch to your permanent repayment plan.

How long does debt counselling last?

Every case is unique and depends on the amount of debt you have. Our debt counsellors have the power to lower your monthly payment amount by extending your repayment term/time. Once you’ve paid your last instalment in the payment term, you can opt out of debt counselling. On average, our clients are debt-free within 36 to 60 months.

Will creditors be able to debit my account during debt counselling?

No. Your debt counsellor will instruct you to open a new bank account. Because they don’t have the new account details, creditors will not be able to debit the new account. In addition, DebtCare will notify all your credit providers that you have been approved for debt counselling and may no longer contact you or take money from you.

How do I apply at DebtCare?

  1. Get in touch with us. If you fill in our contact form, we will call you.
  2. We will need to assess your debt status. To do this, you will need to supply us with a few details on our online or downloadable
  3. Once approved, you will need to send us a copy of your ID and payslip.
  4. Open a bank account at a new bank and supply DebtCare with the account details. Also instruct your employer to pay your salary into the new account.
  5. DebtCare’s experts will restructure your debt to a minimum monthly payment you can afford. We will also inform your creditors that you are a client of DebtCare and they are no longer allowed to harass you.
  6. Pay your new, lower monthly instalment and remain protected.

How does DebtCare lower instalments?

As debt counsellors, we are qualified and certified to extend payment plans and reduce interest rates. By adjusting these two figures, we are able to restructure your debt in order to make it more manageable. You cannot lower your monthly repayments yourself.

Is it true that I can’t get blacklisted if I’m a client of DebtCare?

Yes. While you are an active client of DebtCare, you also have the benefit of the protection of the National Credit Act. This means you cannot be blacklisted.

Will I be required to go to court?

No. Our legal partners will be applying for a court order on your behalf. This court order is used to notify your creditors that you are a client of DebtCare and are undergoing debt counselling, so they no longer have a right to contact you to secure payments.

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