What is a debt counsellor? (South Africa)

A debt counsellor is a certified and registered professional who plays a crucial role in assisting individuals or households struggling with debt management. Their primary responsibility is to provide a lifeline for those drowning in debt, offering them a structured way to regain control over their financial situation.

1. The debt counsellor reviews the client’s income, expenses, and outstanding debts. This review helps the counsellor understand the client’s financial status and the extent of their debt problem.
2. The debt counsellor communicates with the client’s creditors. The goal is to negotiate new repayment terms that the client can manage. This negotiation can result in lower monthly payments, longer repayment periods, or reduced interest rates.
3. Based on the financial assessment and negotiations with creditors, the debt counsellor develops a debt repayment plan. This plan details how the client will use their income to cover living expenses and repay debts.
4. The debt counsellor also educates the client about financial management. This education can include teaching the client about budgeting, saving, and avoiding future debt.

In summary, a debt counsellor is a professional who helps people manage their debt. They negotiate with creditors, create debt repayment plans, and provide financial education. Their goal is to help the client regain control over their financial situation.

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