https://www.ncr.org.za/register-of-debt-counsellors/, https://www.lcdebtcounselling.co.za/

LC Debt Counselling, 819 5th Avenue, Wonderboom South, Pretoria (2026)

28/10/2026

# Debt Review Should Never Be Hidden

Why honesty and transparency matter when choosing a debt counsellor

When someone is struggling to keep up with their debt repayments, the promise of a lower monthly payment can sound like exactly what they need.

But what happens when that promise comes without a proper explanation of what they are agreeing to?

A recent case involving a debt counsellor who was fined R1 million and had their registration cancelled by the National Consumer Tribunal (NCT) has raised serious concerns about how some consumers are being introduced to debt review.

Following hundreds of consumer complaints, an investigation by the National Credit Regulator (NCR) uncovered misleading advertising and questionable practices during the sign-up process.

Some consumers were reportedly led to believe they were speaking to representatives of the NCR or their bank. Others were promised significantly reduced monthly repayments without being clearly informed that they were entering debt review.

For consumers already experiencing financial difficulties, this kind of misinformation can have lasting consequences.

# # Debt Review Is a Commitment, Not a Quick Fix

Debt review is a regulated process designed to assist over-indebted consumers by restructuring their debt repayments into a more manageable payment plan.

For the right person, it can make a significant difference.

However, it is important to understand that debt review is not a way to make debt disappear.

In most cases, consumers will repay their outstanding debts over several years. Monthly repayments may be reduced by extending repayment periods, and credit providers may agree to interest rate concessions.

There are also responsibilities that come with entering the process.

Consumers need to commit to their agreed repayment plan, manage their household expenses carefully and understand that they cannot access additional credit while under debt review.

These are important considerations that should be explained before anyone agrees to proceed.

When consumers understand the process from the beginning, they are better prepared to make the financial adjustments needed to complete it successfully.

# # There Is No Reason to Disguise Debt Review

One of the most concerning aspects of the reported misconduct is that consumers were not always told what was being offered to them.

Debt review is a legitimate financial rehabilitation process provided for under South Africa's National Credit Act.

It does not need to be presented as a secret bank programme, a special government initiative or an unexplained reduction in monthly repayments.

A registered debt counsellor should be able to explain exactly how the process works, including its advantages, limitations and financial implications.

A lower monthly repayment may provide much-needed relief, but consumers should also understand how that reduction is achieved and what it means for the total repayment period.

The purpose of debt counselling should always be to help consumers make informed financial decisions, not simply to convince them to sign an agreement.

# # Five Questions to Ask Before Entering Debt Review

If you are considering debt review, there are several questions worth asking before making a decision.

1. Are you a registered debt counsellor?

Ask for the debt counsellor's name and NCR registration number. You can verify their registration with the National Credit Regulator.

2. Am I being offered debt review?

If someone contacts you unexpectedly and promises to reduce your monthly debt repayments, ask them directly whether the proposed solution involves debt review.

3. How will my monthly repayments change?

Request a clear explanation of your proposed repayment amount, how it is calculated and how your payments will be distributed to credit providers.

4. How long will I be under debt review?

The duration will depend on your individual financial circumstances, outstanding debt and repayment arrangements. Make sure you understand the estimated repayment period.

5. What restrictions will apply to me?

Understand how debt review affects your ability to obtain further credit and what your responsibilities will be throughout the process.

A reputable debt counsellor should be willing to answer these questions clearly and give you the information you need to make your decision.

# # Protecting Consumers Also Protects the Industry

Cases involving misconduct can understandably cause consumers to question whether debt counselling is trustworthy.

However, the action taken by the NCR and NCT also demonstrates that registered debt counsellors are accountable for their conduct.

The investigation, substantial fine and cancellation of registration send an important message: misleading consumers has consequences.

This matters to those of us working in the debt counselling industry who take our responsibilities seriously.

Every consumer deserves accurate information, fair treatment and an opportunity to understand their financial options before making a commitment.

Debt counselling involves working with people who are often under considerable financial and emotional pressure. That responsibility should never be taken lightly.

# # Making an Informed Decision

In my experience, one of the most important parts of debt counselling is helping people understand their financial position and the options available to them.

Not everyone who is struggling with debt will necessarily need debt review. Each person's circumstances should be assessed before recommending a course of action.

For those who do qualify and choose to proceed, understanding the process is essential.

Debt review can offer a structured way to repay debt, but it requires commitment, realistic expectations and cooperation between the consumer, debt counsellor and credit providers.

If you are considering debt review, take the time to ask questions. Make sure you understand what you are agreeing to and never feel pressured into making an immediate decision.

At LC Debt Counselling, we believe consumers should have the information they need to make informed decisions about their financial future.

If you are struggling with debt repayments and would like to understand whether debt review may be suitable for your circumstances, contact LC Debt Counselling for a confidential discussion.

21/10/2026

Not every debt problem needs debt review.

Are you struggling because your budget needs adjusting, or because your debt repayments have become genuinely unaffordable?

There is a difference, and understanding it matters.

Before making any decisions, speak to a registered debt counsellor who can assess your financial situation and explain your options.

You might need a better budget, an arrangement with your credit providers, or formal debt review.

Not sure where you stand?

Contact LC Debt Counselling. Let's look at your options before you make a commitment.

082 824 6186 | lcdebtcounselling.co.za | [email protected]

09/10/2026

Do You Really Need Debt Review?

Not everyone who struggles with debt needs debt review. Sometimes, understanding your financial situation is the most important first step.

When money becomes tight, it is easy to assume that something drastic needs to change.

Perhaps your salary is barely covering your monthly expenses. Your debit orders go through, groceries need to be bought, electricity keeps getting more expensive, and before you know it, there is very little left to get you through the month.

You might start wondering whether debt review is your only option.

The answer is not necessarily.

As a debt counsellor, I believe it is important to understand someone's financial circumstances before recommending a solution. Debt review can be extremely helpful for people who are over-indebted, but it is not automatically the right answer for everyone experiencing financial pressure.

Financial Pressure and Over-Indebtedness Are Not the Same Thing

There is a difference between having a difficult financial month and being unable to meet your debt obligations on an ongoing basis.

For example, you might have several credit agreements but still earn enough to cover your repayments and reasonable living expenses. You may simply need to make adjustments to how your money is managed.

Someone else could have fewer debts but earn an income that no longer covers their household expenses and monthly repayments.

The amount of debt you have does not tell the whole story.

What matters is whether you can realistically afford your credit repayments while still providing for your household's essential needs.

This is why a proper financial assessment is so important.

Sometimes Your Budget Needs Attention

Before considering formal debt review, it is worth taking a careful look at where your money goes every month.

Start with your income and list your essential expenses, including housing, groceries, electricity, transport, school expenses and medical costs.

Then look at your monthly credit repayments.

Once everything is written down, you may notice expenses that have gradually increased or payments for services you no longer use.

Small adjustments can sometimes make a meaningful difference.

However, I also know that many South African households have already reduced their spending as much as reasonably possible.

When your income barely covers basic living costs, being told to spend less is neither practical nor particularly helpful.

If there is simply not enough money to cover your obligations, you need to consider other options.

What If You Are Struggling but Don't Need Debt Review?

Depending on your circumstances, you may be able to approach your credit providers to discuss alternative payment arrangements.

Some credit providers may consider temporary relief or adjusted repayment terms, particularly when you contact them before your account falls seriously behind.

A registered debt counsellor can help you understand the available options and whether a voluntary repayment arrangement may be appropriate.

The important thing is to act before your financial situation becomes more difficult.

Ignoring missed payments or relying on additional credit to cover everyday expenses can make an already stressful situation worse.

When Should You Consider Debt Review?

Debt review is a formal process regulated by South Africa's National Credit Act.

It is intended to assist consumers who are assessed as over-indebted and cannot reasonably meet their credit obligations.

Through debt counselling, qualifying consumers may have their debt repayments restructured into a more manageable repayment plan.

The process also provides certain legal protections, subject to the requirements of the National Credit Act.

However, debt review comes with responsibilities and restrictions. For example, consumers generally cannot take on further credit while under debt review.

That is why I believe anyone considering this option should understand the process, the costs and the implications before making a decision.

You should never feel pressured to sign an application without understanding exactly what you are agreeing to.

You Can Ask Questions Before Making a Decision

One misconception I often encounter is that speaking to a debt counsellor automatically means you are entering debt review.

It doesn't.

An initial conversation is an opportunity to discuss your financial situation, ask questions and understand what assistance may be available.

Before the conversation, it helps to have an idea of your monthly income, household expenses, outstanding debts and repayment amounts.

You don't need to have every figure memorised, but accurate information makes it easier to assess your circumstances.

Importantly, ask whether the initial consultation is free and clarify any fees before proceeding with a formal application.

A good debt counsellor should be willing to explain your options, including when debt review may not be necessary.

The Right Advice Matters More Than the Right Product

I would much rather see someone make a few practical changes to their budget and regain control of their finances than enter a formal process they do not need.

Equally, I would not want someone who genuinely needs debt counselling to continue struggling because they are afraid to ask for help.

Every financial situation deserves to be considered on its own merits.

You might need a better budget. You might need to negotiate with your credit providers. Or you might benefit from the structure and protection that formal debt review can provide.

The important thing is to make that decision with the right information.

If you are worried about your debt and unsure what to do next, contact LC Debt Counselling.

We can discuss your circumstances, help you understand your options and determine whether debt review is something you should consider.

You don't have to commit to debt review simply to ask for advice.

25/09/2026

One payment. Multiple creditors. Less admin.

When you’re under debt review, keeping track of several different accounts, payment amounts and references every month can become complicated.

A Payment Distribution Agent (PDA) helps simplify the process. You make one monthly payment, which is then distributed to your credit providers according to your repayment plan.

But staying informed still matters. Check your statements, keep your payment records and speak to your debt counsellor if something doesn’t look right.

Need help understanding your debt review payments? Contact LC Debt Counselling.

17/09/2026

One Payment, Many Creditors: How Payments Work Under Debt Review

When you enter debt review, one of the biggest changes is how your debt repayments are managed.

You may have a home loan, vehicle finance, credit cards, personal loans or retail accounts, all with different balances and repayment arrangements.

Trying to manage every one of those payments individually each month can become complicated very quickly.

This is where a Payment Distribution Agent, or PDA, can make the process much easier.

What is a Payment Distribution Agent?

A PDA is a company registered with the National Credit Regulator to provide payment distribution services to consumers under debt review.

Instead of making separate payments to each of your credit providers, you make one monthly payment.

The PDA then distributes the money to your different credit providers according to your debt repayment plan.

This means you don't have to manually keep track of several different banking details, payment amounts and references every month.

What happens to your monthly payment?

Your repayment plan sets out how the money available for your debt repayments should be allocated.

Once your monthly payment is received, the PDA distributes the relevant amounts to your credit providers according to this information.

The PDA also keeps records of the distributions and provides statements showing where your money has gone.

This is important because debt review can continue for several years. Having a clear payment history makes it easier for you and your debt counsellor to keep track of the process and address queries when they arise.

Do you have to use a PDA?

Consumers under debt review do have the right to pay their credit providers directly.

However, choosing to do this means taking responsibility for every individual payment yourself.

You need to make sure that the correct amount reaches the correct credit provider, using the correct payment information, in full and on time.

You also need to keep proof of your payments and provide this information to your debt counsellor so that proper records can be maintained.

For someone with several accounts, this can mean managing numerous separate payments every month.

A PDA simplifies this by allowing you to make one payment while the individual distributions are handled for you.

What about PDA fees?

There is a regulated fee associated with distributing payments through a PDA.

The fee depends on the amount being distributed to each credit agreement, with smaller distributions attracting smaller fees.

It is worth remembering that the service involves more than simply transferring money. The PDA also processes the individual distributions, maintains records and provides statements that allow payments to be tracked.

For many consumers, this administrative support makes an already complicated financial process easier to manage.

Check your statements

Even when your payments are being distributed through a PDA, it is important to stay involved in your debt review.

Check your statements regularly and make sure your monthly payment has been received and distributed.

If you notice something you don't understand, ask your debt counsellor about it sooner rather than later.

Keep copies of your statements and proof of your monthly payments as part of your own financial records.

Be careful when banking details change

One final point is particularly important.

If you unexpectedly receive a WhatsApp message, email, SMS or phone call telling you to send your debt review payment to new banking details, don't simply make the change.

Contact your debt counsellor or PDA using contact details you already know to be genuine and confirm the new information independently.

Scammers know that consumers make regular payments, and a convincing message containing new banking details can put your money at risk.

Debt review should make your finances easier to manage

For many people, one of the benefits of debt review is having structure.

Instead of trying to manage several creditors, different payment dates and multiple repayment amounts on your own, your debt repayment is organised around a formal plan.

Using a PDA can simplify the payment side of that process even further: one monthly payment from you, followed by the necessary distributions to your credit providers.

But remember, you should still know where your money is going.

Check your statements, keep your records and stay in contact with your debt counsellor throughout the process.

If you're under financial pressure and would like to understand how debt review works, you're welcome to contact me for more information.

02/09/2026

Before September gets into full swing, take 10 minutes to look back at August.

Did you spend more than expected on groceries?
Did debit orders leave less than you planned for?
Did you use credit to get through the last few days of the month?
Is there an expense you can adjust this month?

You don’t need a complicated spreadsheet to start paying closer attention to your money.

Sometimes you simply need to know where it went.

If debt repayments are taking up more of your income than you can manage, speak to us.

www.lcdebtcounselling.co.za | 082 824 6186

24/08/2026

That Debt Review Flag Isn’t Forever

If you are under debt review and check your credit report, you may see that you have been flagged as being under debt review.

For many people, this causes concern. They worry that the flag will stay on their name permanently or that they will never be able to apply for credit again.

That is not what the debt review flag means.

The flag is temporary. It forms part of the debt review process and remains in place while you work through your repayment plan.

Why is there a debt review flag?

When you formally enter debt review, your registered debt counsellor notifies your credit providers and the relevant credit bureaus.

Your credit profile will then show that you are under debt review.

While you are in the process, you cannot take on additional credit. This may feel restrictive, but there is a practical reason for it.

If your monthly budget is already under pressure, another loan, credit card or store account simply adds another repayment. What looks like a quick solution can make an already difficult financial situation worse.

The restriction on new credit gives you an opportunity to concentrate on the debt you already have.

It is not a permanent black mark

One of the biggest misconceptions about debt review is that the flag remains on your credit profile forever.

It does not.

Once you meet the legal clearance requirements, your debt counsellor can issue a Form 19 clearance certificate and notify the relevant parties so that the debt review listing can be removed.

In most cases, this happens once the qualifying debts included in your debt review have been settled.

If you have a home loan, you do not necessarily have to pay the entire bond off before you can receive clearance. If the other qualifying debts have been settled, your home loan is up to date and you can afford the repayments going forward, clearance may still be possible.

Your debt counsellor will check the necessary account information and paid-up letters before issuing the clearance certificate.

Be very careful of promises to “remove your flag”

Unfortunately, there are businesses that know how desperately some consumers want to get out of debt review.

You may see advertisements promising quick debt review removal, guaranteed flag removal or special methods of getting your name cleared.

Be cautious.

There is no secret contact at a credit bureau who can simply make a valid debt review court order disappear.

If a debt rearrangement court order has already been granted, you cannot simply decide to cancel the process because your circumstances have improved or because you would like to apply for credit again. The normal route out of the process is to meet the legal clearance requirements.

Most importantly, do not stop making your debt review payments because someone has promised to remove the flag for you.

Missing payments can put the progress you have already made at risk.

Speak to your registered debt counsellor before making any changes.

Know what you are signing

It is also important to understand the difference between asking for debt advice and formally applying for debt review.

Asking questions or speaking to a debt counsellor about your financial situation does not automatically mean that you are under debt review.

Before signing documents, make sure you understand what you are agreeing to and check that the debt counsellor you are dealing with is registered with the National Credit Regulator.

If you are unsure about your current debt review status, ask. It is always better to get clarity than to make decisions based on assumptions.

Keep your eye on the end goal

Being under debt review can feel like a long road, especially when you still have several years of repayments ahead of you.

But every payment reduces what you owe.

Keep copies of your paid-up letters, ask your debt counsellor for updates on your balances and stay in contact if your financial circumstances change.

When you eventually meet the clearance requirements, your debt counsellor can help you complete the process and have the debt review listing removed from your credit profile.

The debt review flag is temporary.

The goal is not simply to have the flag removed. The goal is to reach the point where you no longer need it.

If you are currently under debt review and have questions about your progress, clearance or your debt review status, contact LC Debt Counselling. We will help you understand where you are in the process and what still needs to happen.

19/08/2026

When your income drops, your budget needs to change too.

Trying to maintain the same lifestyle on less income can quickly lead to relying on credit just to get through the month.

Start with the basics:

• Know exactly what income you have available
• Prioritise essential household expenses
• Pause or reduce non-essential spending
• Check whether you have credit life insurance
• Avoid taking on new debt to cover the shortfall
• If you're under debt review, speak to your debt counsellor early

You don't have to have everything figured out immediately. Start by protecting the money you have and dealing with the most important expenses first.

If a change in income is making it difficult to keep up with your debt, contact LC Debt Counselling to discuss your options.

19/08/2026

Losing your job is one of the most obvious ways your financial situation can change, but it is not the only one.

Your working hours may be reduced. Overtime may disappear. Commission can drop. A contract can come to an end. Or perhaps someone else in your household who contributed towards expenses is suddenly no longer earning.

Whatever the reason, when your income changes, your financial plan needs to change with it.

The important thing is not to wait until missed payments start piling up before looking at your options.

Start With What You Know
When income drops unexpectedly, it is tempting to look at the entire problem at once: the bond or rent, groceries, school expenses, credit repayments, electricity, transport and everything else that still needs to be paid.

Instead, start with the numbers you know.

How much income will your household have this month? What money is still expected? What are the expenses that absolutely have to be paid?

Your old budget was built around your old income. Trying to maintain it by using credit can quickly turn an income problem into a much bigger debt problem.

For now, concentrate on essentials such as housing, food, electricity, transport, medical needs and important insurance.

Subscriptions, entertainment and other non-essential expenses can be reviewed or paused while you adjust.

Check Your Credit Life Insurance
This is something many consumers only discover when they need it.

Some credit agreements include credit life insurance. Depending on the policy and your circumstances, this insurance may provide benefits following events such as retrenchment, unemployment, disability or death.

Don't assume that you are covered, but don't assume that you aren't either.

Look through your credit agreements, statements and insurance documents. Ask the insurer specifically what your policy covers and what is required to submit a claim.

If you have lost your job, do this as soon as possible. Insurance claims are generally not something you should simply expect to happen automatically.

What If You Are Already Under Debt Review?
A sudden loss or reduction of income can be particularly frightening when you are already under debt review.

Your first instinct may be to wait and see if you can somehow make the next payment.

Please don't.

Contact your debt counsellor as soon as you know your circumstances have changed, preferably before a payment is missed.

Your debt counsellor needs an accurate picture of your financial situation to help you understand what options may be available. They can also assist you in identifying relevant credit life insurance policies and understanding how your changed circumstances could affect your debt review.

Ignoring the problem will not make the payment disappear. Early communication gives everyone more time to deal with the situation.

Don't Forget About UIF
If you have become unemployed, check whether you qualify for UIF benefits and start the application process as soon as possible.

If you receive UIF, a retrenchment package or an insurance payout, resist the temptation to treat it as extra money.

You don't know exactly how long it will take to replace your previous income.

Work out how long the money may need to support you and your household and plan accordingly.

Be Careful About Borrowing Your Way Through the Gap
When there is suddenly less money coming in, credit can feel like the quickest solution.

A loan might cover this month's shortfall. A credit card might pay for groceries. A store account might solve an immediate problem.

But unless you know how those repayments will be covered in the months ahead, you may simply be postponing the financial pressure and making it more expensive.

This is the time to protect the money you still have, reduce unnecessary spending and get advice before taking on additional debt.

You Don't Have to Solve Everything Today
A sudden change in income can make the future feel very uncertain.

You may not know when you will find another job, when business will improve or when your household income will return to what it was.

You don't need all those answers today.

You do need to deal with what is in front of you.

Review your budget. Check your insurance. Apply for any benefits you may qualify for. Speak to the people who need to know. If you are under debt review, contact your debt counsellor early.

And then deal with the next practical step.

Financial circumstances can change very quickly. Asking for help early can give you more options than waiting until the situation has become a crisis.

05/08/2026

A traffic light isn't just for the road.

It's also a useful way to think about debt review.

🟢 Learn.
🟠 Check.
🔴 Act.

Not every question is a crisis, but knowing when to act can make all the difference.

If something doesn't seem right, don't ignore it and don't guess.

Speak to a registered debt counsellor and get the facts.

www.lcdebtcounselling.co.za

LC Debt Counselling

28/10/2026

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