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August 2020

Although many sectors have been allowed to get back to work, many South African households are in significant financial hardship and others have been struggling to make ends meet even before the COVID-19 pandemic, says Adv. Kedilatile Legodi, Acting Manager: Education & Communication at the National Credit Regulator (NCR).

In 2007, debt counselling was introduced in the National Credit Act (NCA) as a debt relief measure intended to assist over-indebted consumers struggling to repay their debts through the restructuring of their debts and making repayments manageable. Furthermore, the process of debt counselling leads to rehabilitation as it presents consumers with an opportunity to start afresh and build a clean credit record.

What are some of the benefits of debt counselling?

Whilst it may be difficult for many to confront their financial hardship, consumers who are receiving income are encouraged to act immediately by considering debt counselling as a debt relief measure and to do so before their assets such as houses, cars and others are repossessed by credit providers, urges Legodi.

Below are some of the things that consumer take further note of if considering debt counselling:

Legodi stresses that consumers should ensure that they receive a comprehensive explanation from the debt counsellor and understand the debt counselling process before they sign and accept the application. Furthermore, they must have knowledge of who their debt counsellor is (i.e. name and NCR registration number), what the consequences of being under debt counselling is, how their debt is going to be restructured, the related costs, what their rights and obligations are under debt counselling so that they can be able to make informed decisions, stay informed to proactively address any concerns or anomalies they notice.

The NCR was established, amongst others to ensure compliance with the NCA, receive and investigate complaints. If consumers are unhappy with the service provided by debt counsellors, credit providers, credit bureaus or PDAs, they are invited to  lodge a complaint with the NCR at This email address is being protected from spambots. You need JavaScript enabled to view it.; concludes Legodi.

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About The National Credit Regulator
The National Credit Regulator (NCR) was established in terms of the National Credit Act 34 of 2005 (NCA) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information contact:

Ntombizodwa Mahlangu
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Cell: 064 752 3926
Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za