Should I Consider Debt Counselling?

A Compassionate Guide for Those Who Feel Overwhelmed

By Janet Homann

If you're reading this at 2 AM, unable to sleep because of financial worries, know that you're not alone. After 17 years of sitting across from families in crisis, we've learned that the bravest thing you can do is ask: "Is there a better way?"

The answer is yes. But let's talk honestly about what that journey looks like.

The Weight You're Carrying Right Now

You probably didn't set out to end up here. Most people don't wake up one morning and decide to accumulate overwhelming debt. Life happened—medical bills, job loss, divorce, business struggles, or just the slow creep of living expenses outpacing income.

Maybe you've been juggling credit card payments, moving money around, borrowing from family, or lying awake calculating which bills you can delay another month. Perhaps you've already tried budgeting apps, debt consolidation loans, or cutting expenses to the bone, but nothing seems to make a real dent.

Here's what we want you to know: This isn't a character flaw. You're not irresponsible or broken.

After nearly two decades of helping families escape financial bondage, we've seen the same story countless times. Good people, working hard, trapped in a system designed to keep them struggling. The relief in their eyes when they realize they're not alone—and that there's actually a legal, structured way out—never gets old.

What Is Debt Review, Really?

Debt review (also known as debt counselling) isn't about someone lecturing you on budgeting or telling you to stop buying coffee. It's a legal process, regulated by the National Credit Act, designed to give over-indebted consumers a structured path to financial rehabilitation.

Important: Before any debt review process begins, you must give explicit, written consent and be fully informed about what debt review entails, including all consequences and implications.

Here's how the process actually works:

The Legal Protection

When you enter debt review through a registered debt counsellor, and after proper assessment and court approval, you may receive legal protection from credit providers taking legal action. However, this protection comes with specific conditions and responsibilities that will be fully explained during your consultation.

The Restructured Payment Plan

A registered debt counsellor will conduct a thorough assessment of your over-indebtedness in line with the National Credit Act. If you qualify, they may negotiate with creditors to restructure your payments. This process requires court approval and your active participation throughout.

Realistic Expectations About Timelines

The duration of debt review varies significantly depending on your specific circumstances, debt amounts, income, and cooperation with the process. While some cases may resolve in a few years, others may take longer. Your debt counsellor will provide realistic timeframes based on your individual situation, but cannot guarantee specific outcomes or timelines.

The Questions You're Probably Asking

"Am I Really That Bad Off?"

If you're asking whether you qualify for debt counselling, here are the signs that it might be the right step:

• More than 40% of your income goes to debt payments (excluding your bond)
• You're using credit to pay for basic living expenses like groceries or utilities
• Monthly minimum payments exceed what you can realistically afford while still covering essential needs
• You're constantly stressed about money and it's affecting your health, relationships, or sleep
• You've tried other solutions but the debt keeps growing despite your payments

"Will This Affect My Credit Record?"

Yes, debt review will appear on your credit record and will affect your ability to access further credit during the process. This is a legal requirement and an important consideration. Your debt counsellor is legally obligated to fully explain these consequences before you consent to the process.

Upon successful completion of debt review, you will receive a clearance certificate. However, your debt counsellor cannot make guarantees about future credit applications, as these decisions rest with individual credit providers.

"What Are My Obligations?"

Debt review requires your full commitment and cooperation. You must:

• Provide accurate and complete financial information
• Make payments as agreed in your restructured plan
• Not take on additional credit during the process without court permission
• Inform your debt counsellor of any changes in your circumstances

Failure to meet these obligations may result in the termination of your debt review.

"What Will People Think?"

The shame around financial struggle is real, but it's also misplaced. Some of the most successful, intelligent people we know have needed debt counselling. Business owners, professionals, teachers, nurses—financial pressure doesn't discriminate.

At The CS Group, we've learned that the people who seek help are often the most responsible ones. They're not ignoring their problems or running away—they're facing them head-on and looking for solutions.

What the Process Actually Looks Like

Step 1: The Honest Conversation

Your first consultation involves laying everything on the table—all debts, all income, all expenses. This isn't about judgment; it's about getting a clear picture of where you stand. Many clients tell us this conversation itself brings relief because finally, someone understands the full scope of what they're dealing with.

Step 2: The Thorough Assessment

A registered debt counsellor will conduct a comprehensive assessment to determine whether you qualify as over-indebted according to the National Credit Act criteria. This assessment is mandatory and thorough. The debt counsellor will explain all findings and implications before proceeding.

Important: You have the right to request clear, written explanations of the assessment process and outcomes. Do not sign anything you don't fully understand.

Step 3: Full Disclosure and Informed Consent

Before any debt review application proceeds, your debt counsellor is legally required to:

• Fully explain all consequences of debt review, including impact on your credit profile
• Provide clear, written information about the process, costs, and your obligations
• Obtain your explicit, written consent
• Ensure you understand that debt review is a legal process with binding obligations

Red Flag Warning: Be cautious of any service provider who rushes this process or fails to provide comprehensive explanations. This may indicate unprofessional conduct.

Step 4: The Proposal and Court Application

If you qualify and provide written consent, your counsellor prepares a proposal for court consideration. This proposal must be realistic and sustainable based on your actual financial circumstances.

Step 5: Court Order and Legal Obligations

If the court grants the debt review order, it becomes legally binding. You must comply with all terms of the order. Non-compliance may result in termination of the debt review and potential legal action by creditors.

Step 6: Ongoing Compliance and Monitoring

You make payments as determined by the court order. Your debt counsellor monitors your progress, but you remain responsible for meeting all obligations. Any changes in your circumstances must be reported immediately.

Important: While in debt review, you cannot access additional credit. This restriction remains until you receive your clearance certificate.

Important Consumer Protections and Red Flags

Based on recent NCR guidance, consumers should be aware of the following:

Your Rights as a Consumer

• Right to full disclosure: Any debt counsellor must provide complete, written information about the debt review process, costs, and consequences before you sign anything
• Right to verification: You can and should verify your debt counsellor's registration with the NCR at www.ncr.org.za
• Right to clear explanations: Request written explanations of any aspect you don't understand
• Right to report misconduct: Any suspected misrepresentation or unethical conduct should be reported to the NCR via [email protected]

Warning Signs to Avoid

Be cautious of debt counsellors or services that:

• Promise unrealistic outcomes or guaranteed results
• Rush you into signing without proper explanation
• Fail to conduct proper over-indebtedness assessments
• Make misleading claims about "saving money" or specific timeline guarantees
• Don't provide clear, written information about costs and consequences
• Contact you telephonically without proper introduction or fail to obtain informed consent

Verify Before You Sign

• Check that your debt counsellor is registered with the NCR
• Ensure you receive written information about the process
• Don't sign anything you don't fully understand
• Ask for references and verify their track record
• Report any suspicious or unprofessional behavior

When Debt Counselling Isn't the Answer

Sometimes, honest assessment reveals that debt counselling isn't the best option:

• If your debt is manageable with some budgeting and discipline
• If you're about to receive funds (inheritance, bonus, retrenchment package) that could clear your debt
• If bankruptcy might be more appropriate for your situation
• If you have no steady income to support even reduced payments

A good debt counsellor will tell you honestly if there's a better path for your specific situation.

The CS Group Difference: Why Experience Matters

After 17 years in this field, we've learned that debt counselling isn't just about numbers—it's about people. Behind every financial statement is a human being with dreams, fears, and a story that matters.

Our Approach

• We know your name and your story, not just your account number
• We provide ongoing support throughout your journey, not just at the beginning
• We understand the emotional weight of financial stress and address it alongside the practical aspects
• We work with established relationships with creditors built over years of successful negotiations
• We're guided by Kingdom values that prioritize your dignity and long-term well-being

What Sets Us Apart

Unlike large, commercialized operations, we maintain personal relationships with our clients. Bernidene and Lynn, our registered debt counsellors, have walked alongside hundreds of families through their darkest financial moments and celebrated with them as they achieve freedom.

We've seen miracles happen—not just financial ones, but relational healing, restored peace, and renewed hope. When financial pressure lifts, families reconnect, health improves, and dreams become possible again.

Making the Decision: A Framework for Clarity

If you're still wondering whether debt counselling is right for you, consider these questions:

The Practical Test

1. Can you realistically pay off your debt with your current payments in a reasonable timeframe?
2. Are you able to cover basic living expenses without using credit?
3. Is your debt-to-income ratio putting you at risk of losing essential assets?

The Emotional Test

1. Is financial stress affecting your health or relationships?
2. Do you feel hopeful about your financial future, or trapped?
3. Are you avoiding dealing with your debt situation because it feels too overwhelming?

The Future Test

1. Where will you be financially in five years if nothing changes?
2. What opportunities are you missing because of debt payments?
3. How would financial freedom change your family's life?

Taking the First Step

The hardest part of any journey is the first step. If you've read this far, you're already showing the courage and responsibility that successful debt counselling requires.

What Happens Next?

1. Verify the debt counsellor's registration with the NCR at www.ncr.org.za
2. Request a comprehensive consultation where everything is explained in writing
3. Gather your financial documents accurately and completely
4. Ask for full disclosure of all consequences, costs, and your obligations
5. Take time to consider - don't be rushed into signing anything
6. Ensure you give informed, written consent only after understanding everything fully

Before You Commit

• Understand this is a legal process with binding obligations
• Know that debt review will appear on your credit record and restrict access to credit
• Realize that compliance is mandatory - non-compliance can result in termination
• Verify all claims and promises - be wary of unrealistic guarantees
• Get everything in writing - verbal promises are not enforceable

Remember This

• You're not the first person to face this situation, and you won't be the last
• Seeking help is a sign of strength, not weakness
• Every success story started with someone brave enough to make a phone call
• Your current situation is not your final destination

A Message of Hope

If you're sitting with this article at 2 AM, worried about tomorrow's expenses or next month's payments, we want you to know something: You are not alone, and you are not without options.

For 17 years, we've watched families transform their financial reality through debt counselling. We've seen tears of relief when people realize there's actually a legal way out. We've celebrated clearance certificates that represent not just debt freedom, but the restoration of dignity and hope.

Your story doesn't have to end with financial struggle. The same God who has carried you this far has better plans for your future—plans that include peace, provision, and the ability to be generous with others.

The phone call that changes everything might be the hardest one you ever make. But on the other side of that conversation might be the financial freedom you've been dreaming of.

You were not created to live in financial bondage. And with the right help, you don't have to.

Ready to explore whether debt review might be appropriate for your situation? Contact The CS Group today for a comprehensive, transparent consultation where we'll explain everything clearly and ensure you have all the information needed to make an informed decision.

Important: We are committed to full compliance with NCR regulations and will provide you with complete, written information about the debt review process, including all consequences and your obligations, before requesting any consent.

 

Registered Debt Counsellors: Bernidene Thieroff NCRDC764 & Lynn Nel NCRDC4398

Schedule an Appointment