When you are in trouble with repaying debt, contact the creditors immediately in order to make an acceptable arrangement.

When a consumer cannot pay their debts, they will have the right to approach a debt counselor for assistance. The counselor will help the consumer to restructure or rearrange their debt repayments if the consumer is deemed to be over-indebted – this arrangement can be made an order of court.

Debt counsellors must be registered with the National Credit Regulator and do charge for their services (there are guidelines as to what these fees are). Interest continues to be charged on the debt.

Consumers should make sure that they understand exactly what will happen under counselling and should know upfront what the charges and payments will be.

Once a consumer has signed for debt counselling, this is noted on the credit bureau’s consumer profile and s/he is not allowed to obtain further credit until the counselling process is finalised or withdrawn.

Debt counsellors also take ownership of property in some instances and consumers lose their assets if they are unable to stick to an agreement.
(See: Using a Debt Counsellor)