10 Commandments Of Debt Counselling

Let’s face it. It is so easy to get trapped in a downhill slide of credit cards, personal loans and clothing accounts. Sometimes people borrow more money than they can afford to pay back and then they find themselves in serious financial trouble. Debt Counselling is an option for over-indebted consumers. But there is a few things you should know about debt counselling.

We’re calling it the 10 commandments of debt counselling.

10 Commandments of debt counselling

What is Debt Counselling

Debt Counselling is a financial process that provides for a consumer to be declared over indebted and for the Debt Counsellor to negotiate a restructured payment plan and to provide a consumer with financial relief from their debt. 

Understanding the deference.

One thing to understand is the deference between debt counselling and debt review. Debt counselling is a more broad term and is the service we over here at Cyber Finance. We are a debt counselling company providing over indebted South Africans a service (Debt Counselling) to effectively help you reduce your debt. This is done through a number of short and long term options. Debt review is the most notable one of these options, but is not the only one. We also offer Loan Consolidation, Voluntary debt restructuring (VDR), Sequestration and Administration.

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So with out any further delay,

Let’s get into our 10 Commandments of Debt Counselling.

1.      Debt counselling is a court order.

It is very important to be aware that debt counselling is not the legal process but rather debt review. This is done through a registered debt counselling company like Cyber Finance. 

The process of debt counselling is regulated by the National Credit Regulator (NCR). So make sure that if you approach a company that are registered with the NCR. 

With Debt Review, your debt counsellor takes your application to court to be approved be the court that you are in fact over-indebted and need assistance with your  debt obligations. 

The court takes your individual situation and financial needs into consideration with your application.  

It is important to take note here that a much lower restructured payment may not always be approved by the court, so shopping around for a lower installment from different debt counsellors is not a good idea.

2.      When you are under debt review, creditors cannot take legal action against you.


Because debt review (a service of debt counselling) is a legal process. You are protected by the court, from the moment your debt counsellor informs your creditors that you are applying for debt counselling (this is usually one of the first steps taken by your debt counsellor) and your creditors accept the proposal from your debt counsellor, You are then protected against any legal action from your creditors. 

Alain Le Roux, Corporate Financial Counsellor at Cyber Finance urges every South African to face up to their debt in this difficult time and to ask for help before it is too late. Get a free debt assessment today from one of our Financial advisers, who would help you to find the right solution for your debt.

3.      There is no permanent record of having undergone debt counselling.

After you have successfully completed your debt counselling process and you are no longer over indebted. We provide you with a clearance certificate to state that you are now debt free.

The flag on your credit record is removed. No future creditor will be able to see that you have been under any debt counselling process. Your credit record will be clean and you will be able to make new responsible debt.

4.      There is only one monthly repayment to be made

To make live even easier for you, all your debt gets restructured into one monthly payment and distributed to your creditors. In other words your debt is consolidated.

Your debt counsellor will do a debt assessment and see what amount you would be able to afford monthly. This is based on your income and cost of living, you will never pay more towards your debt than what you can afford.

With Debt Counselling your needs are placed before the needs of your creditors. 

Your monthly restructured payment is paid to a registered Payment Distribution Agent (not directly to your debt counsellor).

The PDA then distributed your payment accordingly to all your creditors. 

5.     Your budget will meet your basic needs first before provision is made for debts

As mentioned in the previous point. This is set by law, that when you are applying for debt counselling (in this case debt review to be more specific). Your basic living costs are provided for first and then an amount can be established to go towards your debts.

Your basic living needs. Include things like food, transport costs, rent, school fees and insurance are calculated in your budget. You will always have money for these things if you stick to your restructured budget. 

That is why debt counselling is the most effective solution for you. You are then only responsible for paying your one monthly payment that is within your budget. 


6.     You will never pay more money than you can reasonably afford.

This might seem the same as in commandment 5, but there is a deference.

When it comes down to the exact amount you can pay towards your debts. It is set to the maximum amount you can afford. So, be careful of debt counsellors offering you a much lower monthly payment then others. As that amount may not be accepted by the court and you end up paying more than you initially was promised by your debt counsellor.

Make sure you understand your affordability and that you are not mislead by empty promises.


7.     A Debt Counsellor will assist you in managing your Finances.

Here at Cyber Finance, our dedication as a debt counsellors goes beyond just your application. We help you throughout your debt assessment to reduce your total expenses to help you get some relief. We negotiate with your creditors and manage your account for you.

We provide you with a monthly statement that is also sent to all your creditors. 

You never have to worry about anything. If a creditor contacts you, you simply directed them to speak to us, your debt counsellor.


8.     You are not allowed to make more debt while under debt counselling.

This is primarily directed at Debt Review.

There are other services like Voluntary Debt Restructuring(VDR) that provide you with an option to be able to use some credit facilities or exclude your partner, if you are married in community of property.

Under Debt Review you can’t make any new debt as there is a flag placed on your credit record. But as soon as you completed your debt review process and you are no longer over-indebted, you will be able to make new debt again.


Find out more about the deference between Debt Review and VDR >> Debt review vs VDR


9.     It does cost a bit of money, but the fees are set by law.

Yes, it does cost you money to apply for debt counselling.

This amount however is set by law in the National Credit Act and is even capped to a limit of R8000.

You can rest assured that you will not be over charged and your credit record would not be affected by these costs.

Your creditors also agree to these charges. Your first payment will go towards the debt counselling company for their services rendered.

The second month’s payment will go towards the legal fees for your application. These amounts will never be more than your set monthly payment, so you do not need to pay extra for these costs and services.


10.   Your debts may take longer to pay off.

In most cases this doesn’t apply. But there is times where your debts can take longer to payoff if your situation is at a drastic point. That is why it is vital to not wait to long to ask for help.

There comes a point where no one will be able to help. Finding a solution while it is possible is the best action you can take. Debt counselling services created to help better your life and improve your financial health.

In this instance Debt Review is usually worked out to take a maximum of 5 your to clear your credit record. 



The basic is that there are a lot of information to be aware off before you decide to go under debt counselling. If you are over-indebted or feeling overwhelmed by your debt and looking for a solution to your situation. Debt counselling is definitely the right way of dealing with it, even if you just want some guidance in the right direction. We can assist you!!!

Contact us today if you want to speak to a financial specialist about debt counselling and how we could help you though one of our services.

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