CMDebt Counselling

Debt counselling was introduced by the National Credit Act (NCA) in 2007.

Since then, about 402 000 consumers have applied for debt counselling, over R10 billion has been paid to credit providers by consumers in debt counselling, and every month about R255 million is collected from consumers in counselling and paid over to their creditors.

A debt counsellor is registered and regulated by the National Credit Regulator (NCR).
We assist consumers who are experiencing financial problems and are having difficulty making their current monthly payments by providing them with budget advice, support and mediation with credit providers.

Statutory debt counselling is designed to provide over-indebted consumers with an alternative to the traditional remedies for defaulting on your debt: administration and sequestration.

There are disadvantages to both administration and sequestration. For example, you may apply to have your debt placed under administration only if your total debt is less than R50 000, and the administration charges are high.
And when you go into sequestration, you lose your assets and have to obtain permission from the court-appointed trustee if you want to borrow money.

Rehabilitation – and, to some extent, empowerment – of the over-indebted consumer is at the heart of debt counselling.
One of its big attractions is that the process is regulated and designed to protect you from harassment from your creditors and the loss of crucial assets. Unlike sequestration whereby you must apply to a high court for a rehabilitation order, you can be rehabilitated as soon as the debt counselling process is completed – with no negative listing remaining on your credit record.

After getting an overview of your financial picture by taking inventory of your credit cards, income and expenses, you will discuss your financial goals and create an action plan to help you meet those goals.