From the 1st of June 2007 Debt Counselling Services became available to Consumers who are unable to honour in a timely manner, all credit agreements to which they are party as indicated by their history of debt repayment.
A consumer who cannot meet his monthly obligations under all Credit agreements, after basic living expenses have been paid, can apply to be placed under Debt Review in Terms of Section 86(2) of the National Credit Act 34 of 2005.
A Consumer may approach a Debt Counsellor to carry out a Financial review of his/her financial affairs and officially determine whether or not he or she qualifies for Debt Counselling. The process is known as Debt Review.
The aim of Debt Counselling is to assist over in debt Consumers in re-arranging their debts in such an order that they can meet their monthly living expenses and also pay each of their Creditors as much as they can afford to every month and thereby avoiding legal action.
Only registered debt counsellors who holds a registration certificate may conduct such a Debt Review and make a determination as to whether the consumer is over indebt or not.