Too many South Africans find themselves trapped under multiple high interest obligations and need a structured rescue. One way of doing that is through debt counselling.

Debt counselling is a legal and regulated process in which a registered debt counsellor steps in between a consumer and creditors to negotiate new payment terms or interest rates, enabling a single affordable monthly payment.

Unlike debt consolidation, which replaces multiple debts with one new loan, debt counselling restructures existing obligations without creating fresh debt. It can stretch out repayment terms, lower interest, and reduce penalties to make repayment possible again.

A key benefit is in restoring breathing room. Debt counselling can stop legal actions or judgments while negotiations are underway, and it shields clients from reckless lending until the process concludes. According to Old Mutual, consumers under debt review cannot take on new credit until they have successfully completed the process.

To qualify, your income must be sufficient to cover a restructured instalment and you must not already have default judgments or reckless credit agreements. A debt counsellor will assess your accounts, household budget, and repayment capacity, then compile a proposal that creditors must accept or reject. Once accepted, the arrangement becomes legally binding through a court order.

Old Mutual advises that people considering debt counselling compare it with alternatives such as debt consolidation or informal negotiations. It is essential to work only with counsellors registered with the National Credit Regulator or the Debt Counsellors Association of South Africa.

Inaction carries a heavy cost. Uncontrolled debt can lead to judgments, garnishees, and financial exclusion. Debt counselling offers a way back to solvency, but it demands patience, discipline, and the determination to rebuild healthy financial habits.