Debt Counselling in Port Elizabeth: Your Questions Answered

How much does a debt counsellor cost?

Debt counselling is not free, but the fees are regulated. The National Credit Regulator sets guidelines for what debt counsellors may charge, which typically includes an application fee, a monthly aftercare fee and a restructuring fee. Crucially, these costs are built into your restructured payment plan rather than paid as a large lump sum upfront, so they form part of the single affordable amount you pay each month. Any registered debt counsellor should give you the exact fees in writing before you agree to anything. Because the figures depend on your circumstances, we do not quote amounts here. To get the real numbers for your situation, send an enquiry using the form and a registered debt counsellor will explain the costs clearly.

Is debt counselling a good idea?

It depends on your situation. For someone who is genuinely over-indebted but has a steady income, debt counselling can be a very good idea: it lowers your monthly payments to an affordable level, consolidates them into one payment, and legally protects your assets from being repossessed while you keep to the plan. The trade-offs are that you cannot take on new credit while under review, and you commit to the process until your debts are paid up. It is not the right answer for everyone, and a good counsellor will tell you honestly if it does not suit you. The only way to know for sure is a proper assessment, which you can arrange by sending an enquiry through the form.

Who qualifies for debt counselling?

In general, you may qualify if you are over-indebted, meaning your monthly debt payments are more than you can realistically afford, you have a regular income so that a reduced payment is workable, and you are struggling to keep up with your accounts. If you have no income at all, or your debt is small enough to manage with a simple budget change, debt counselling may not be the right fit. These are only general pointers, and whether you qualify comes down to the actual numbers in your case. Read more on do I qualify for debt review in Port Elizabeth, or send an enquiry using the form and a registered debt counsellor will assess your position at no cost.

What happens after 3 years of not paying debt?

People often ask this because of prescription, the rule that certain debts can become unenforceable after a period of time, commonly three years for many types of debt, if the credit provider has not taken the right steps and you have not acknowledged or paid the debt in that time. In practice, though, this is not a reliable plan. Making a payment or even admitting the debt can restart the clock, credit providers frequently take legal action well within the period, and not paying damages your credit record and can lead to judgments in the meantime. Prescription is a legal technicality, not a safe strategy for getting out of debt. Debt review is a far more dependable route because it deals with your debt properly and protects you along the way. If you are behind on payments and hoping the problem will simply expire, it is worth getting proper advice first. Send an enquiry using the form and a registered debt counsellor will talk you through your real options.