Debt Counselling Services in South Africa were established as a response to the growing issue of over-indebtedness among consumers. Introduced under the National Credit Act (NCA) of 2005, these services aim to provide relief to individuals struggling to meet their financial obligations. The NCA recognized the need for a structured process to assist consumers in managing their debts responsibly while protecting their rights.

Debt counselling is designed to help over-indebted consumers by offering budget advice, negotiating with credit providers for reduced payments, and restructuring debts into manageable instalments. Registered debt counsellors, accredited by the National Credit Regulator (NCR), play a pivotal role in this process. They ensure that consumers receive professional guidance and that their debts are restructured in accordance with legal requirements.

The introduction of debt counselling services marked a significant step in promoting financial literacy and responsible borrowing in South Africa. It provides consumers with a lifeline to regain control of their finances and avoid the pitfalls of reckless lending and over-indebtedness.

For more detailed information, you can explore the resources available on the National Credit Regulator’s website: