Pro’s and Con’s of Debt Counselling

What are the Pro’s and Con’s of Debt counselling?



  • Once you have made application for Debt review, Credit Providers can no longer attach any assets or take any further legal action against the consumer pending a determination by a Debt Counsellor as to whether the consumer is actually “Over-Indebted” or not. Should the consumer be “Over-Indebted” the consumer continues under Debt Review until all debt is settled.
  • There is no permanent record of being under Debt Review kept on any Consumer Credit Bureau Data Base, meaning that unlike Administration or other avenues, the process leaves no black mark against your name.
    Repayment of your debt obligations is done through one regular monthly payment (to a Payment Distribution Agency who handle the money side of things).
  • The Debt Counsellor will set aside a certain amount of income for your necessities (food, school fees, transport costs etc) and you then use whatever money you have left over to pay your debts. You will never pay more money than you can reasonably afford.
  • A registered Debt Counsellor is far more likely to get a positive response from your creditors when it comes to negotiating your repayments than you might as a consumer.
    While under “debt review”, you only make one monthly payment – to a
  • Payment Distribution Agency – who in turn pays all your creditors. This one easy payment will make your finances much easier to manage and reduce your banking fees.
  • A qualified Debt Counsellor will be able to advise you on ways to cut your monthly costs.
  • Relief from all the stress of being in debt. You will get good advice and know that you are doing something about the problem. Knowing that one day the debt will gone, as will any record of it puts your mind at ease. No more letters you are too scared to open. No more phone calls you are too nervous to answer. Dealing with the problem rather than ignoring it gives you an instant feeling of relief.



  • While under debt review a person can no longer get access to new credit (which you don’t want and cannot access anyway).
  • While this may seem to be a negative thing, it is actually built into the process to protect consumers from becoming further indebted and to protect Credit Providers from being accused of “reckless lending”.
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