If you’re falling behind on monthly payments or borrowing from one account to pay another, you’re not alone, and debt counselling may offer the relief you need. Created under the National Credit Act (NCA), debt counselling is a legal process that consolidates your debt into one affordable monthly payment while protecting you from creditor legal action. The main aim of the process is to make your debt more affordable again and to regain control of your monthly budget.
But how do you know if you qualify? Understanding the South African debt counselling qualification criteria can help you determine whether this is the right solution for you.
What Does It Mean to Qualify for Debt Counselling?
To qualify for debt counselling in South Africa, you must be legally classified as over-indebted. This means your monthly debt obligations exceed what you can realistically afford after covering essential living expenses like food, transport, and utilities.
A registered debt counsellor conducts a formal assessment of your income, debts, and expenses to confirm your over-indebtedness. Once confirmed, you may be able to enter the debt counselling process and receive immediate legal protection while your repayment plan is restructured.
Who Qualifies for Debt Counselling in South Africa?
Debt counsellors evaluate your financial situation based on several key criteria:
1. You Must Be Over-Indebted
This is the primary requirement. You’re likely over-indebted if you:
- Struggle to make minimum monthly payments on time
- Skip certain payments to afford groceries or other essentials
- Use one credit facility to pay off another (robbing Peter to pay Paul)
- Rely heavily on credit cards, personal loans, or store accounts to survive
- Find that debt repayments consume most or all of your monthly income
If any of these situations feel familiar, there’s a strong chance you qualify for debt counselling.
2. You Have a Consistent Source of Income
Debt counselling requires a stable income to support one affordable monthly instalment. Qualifying income includes:
- Salaries from full-time or part-time employment
- Freelance or self-employment earnings
- Small business income
- Pension or disability grants (assessed case-by-case)
Your income doesn’t need to be high; it simply needs to be regular and predictable enough to sustain your restructured payment plan.
3. Your Debts Must Be Regulated Credit Agreements
Only credit agreements governed by the National Credit Act can be included in debt counselling. These include:
- Personal loans and credit cards
- Retail store accounts and clothing accounts
- Vehicle finance agreements
- Home loans (bonds)
- Overdraft facilities
- Short-term loans
These debts can be legally restructured into one reduced monthly payment that fits your budget.
4. You Must Apply Before Legal Action Is Finalised
Debt counselling can stop new legal action from creditors, but it cannot reverse processes already completed. If any of the following have occurred, those specific accounts may fall outside debt review:
- A summons has been issued against you
- A court judgment has been granted
- A repossession or eviction order exists
- Your account has been handed over to attorneys for enforcement
You may still enter debt review for your other accounts, but acting early gives you the best protection.
Who Does NOT Qualify for Debt Counselling?
You may not be eligible if:
- You are not over-indebted (you can comfortably afford your current repayments)
- You have no consistent income source
- Most of your debt is unregulated (e.g., informal loans or loan sharks)
- You are currently under sequestration
- You want to pause payments temporarily without the intention to repay responsibly
If debt counselling isn’t suitable, a registered counsellor can recommend alternative debt solutions tailored to your circumstances.
What Happens Once You Qualify?
When your debt counsellor confirms you are over-indebted, three critical protections take effect. First, you receive immediate legal protection, and creditors must stop harassing calls, threats, and new legal action against you. Second, your debts are consolidated into one reduced monthly instalment based on what you can realistically afford. Third, as long as you maintain your restructured payments, your home, vehicle, and other essential assets remain safe from repossession. The purpose of debt counselling is to stabilise your finances, protect what matters most, and give you a clear path toward financial recovery.
Do You Qualify? Find Out Today
If you’re still unsure whether you qualify for debt counselling in South Africa, the best next step is a free, confidential assessment with a registered debt counsellor. This assessment reviews your debts, income, and expenses to confirm your eligibility and shows you what your new reduced instalment could look like. Many South Africans wait until creditors take legal action; by then, it may be too late to protect certain accounts. If you’re falling behind, relying on credit to survive, or feeling overwhelmed by debt, you likely qualify, and acting now gives you the strongest protection.
Debt counselling is a structured, legal financial rehabilitation solution designed to help over-indebted South Africans regain control of their finances and rebuild their lives. If you’re ready to find out whether you qualify, Vantage Debt Management can guide you through every step with clarity, professionalism, and compassionate support. Ready to take the first step? Contact Vantage today for your free debt assessment and discover how debt counselling can help you move from financial stress to stability.