How Does Debt Counselling Work​

Debt Counselling works by reducing your monthly debt instalments and interest rates. You are also protected by the National Credit Act from creditors. No creditor will be able to take further legal action against you, and your assets will be safe.

In Short

Debt Counselling, also called Debt Review is a legal process that helps to protect you when you cannot afford to pay your monthly debt instalments.

You will qualify for the process even if you are still making ends meet but foreseeing future problems.

The Debt Counselling process starts when you contact a Debt Counsellor. The Debt Counsellor will then do a financial assessment of your income and expenses to see if you are in need of Debt Review.

If so, we will create an interim payment plan which will reduce your instalments drastically. One of our debt experts will discuss the interim plan with you before we proceed.

You will pay this reduced amount from the first month to ensure you have immediate financial relief. Our Payment Distribution Agency – Hyphen PDA, will collect your monthly payment via debit order.

The Application Process

You will be asked to complete a form called a Form 16, which will allow the debt counselling process to proceed. The Debt Counsellor will now place you under Debt Review.

All your credit providers will be notified that you have applied for the process and note it on their systems. We will also cancel any debit order there might be.

The credit providers will send us a form called a Certificate Of Balance (COB). These COB’s will contain all the info of your accounts.

Our debt experts will now start constructing the actual payment plan which will be negotiated with the credit providers. This payment plan will be carefully worked out according to your unique financial situation.

We will also lower your interest rates by negotiating with your credit providers and gaining consent, which should save you money.

The Proposal and Consent

We will send the new payment plan – we call it a proposal, to your credit providers, who will in turn send us acceptance letters.

Once we have received all the acceptance letters, the Debt Counsellor will send your file to an attorney. The attorney will refer the matter to court to obtain a consent order. You will not have to appear in court as your Debt Counsellor will be the applicant in the case.

This consent order will further protect you against your credit providers. As long as you keep on making your payments, you will be safe.

Many of our clients ask if they will be able to pay more at some stage, and the answer is yes. We actually encourage our clients to pay more whenever they can as this will reduce the time you spend under Debt Review.

The Clearance Certificate

As soon as you have made your final payment, we will issue you with a clearance certificate.

The clearance certificate will also be sent to all credit bureaus. Your name will now be clear and you will be debt-free.

Most clients are able to open new accounts within two weeks after receiving their clearance certificate. We do advise that when you want to open new accounts, that you do a budget first.

This way you will be able to see how much you can afford monthly and never fall into the debt trap again.

At Sandton Debt Counselling you will always stay part of the SDC family and we will always be here for you. So should you need help with your budget or just need advice, please give us a call. We will gladly assist you.


To see if you qualify for this program, call us on 086 101 7480 or complete the call me back form. One of our debt experts will call you within 2 business hours.

Let Us Call You Within 2 Business Hours! Our Debt Review Experts Will Answer All Your Questions.