When you apply for debt counselling, the process involves notifying both credit bureaus and your credit providers. Your debt counsellor is required to inform the credit bureaus that you have applied for debt review. This ensures that your credit profile reflects your status as a consumer undergoing debt counselling.

While this notification may temporarily affect your ability to obtain new credit, it also prevents creditors from taking legal action against you during this period.

No, while you’re under debt review, you cannot apply for more credit or use your credit cards. Once you enter the process, a “flag” is placed on your credit report. This is a condition of the National Credit Act, which is there for your own protection.

Debt counselling is designed to make your debt more manageable by restricting access to new credit, helping you focus on paying off existing debt.

Remain calm and verify the identity of the caller. Explain to them that you have applied for debt review in terms of section 86 of the National Credit Act. Tell them who your debt counsellor is so that they can get in touch.

If the credit provider asks for proof, send them your debt review protection certificate or NDA receipt.

Yes, you can still rent property if you are under debt review. Debt review is not a credit agreement. Your debt counsellor will be able to provide your landlord with proof that you are being financially responsible with your budget.

In most cases, you will not have to appear in court at all. Your case does appear before either the Magistrates Court or the National Consumers Tribunal, but most debt review clients don’t need to go to court personally.