Long answer:
A debt counsellor is a natural person registered with the National Credit Regulator (NCR) to assess over-indebted consumers, negotiate affordable repayment plans with credit providers, and obtain a court/tribunal order so you pay one consolidated monthly instalment via a Payment Distribution Agent (PDA). They must be registered under the National Credit Act (NCA) and appear on the NCR’s Register of Registrants. To understand more visit debt review process overview.
What exactly does a debt counsellor do?
Assess affordability & over-indebtedness: They review your income, essential expenses, and all credit agreements to determine if you’re over-indebted under the NCA.
Notify creditors & bureaus: Within five business days of accepting your application, they send Form 17.1notices to credit providers and bureaus that you’re under assessment.
Negotiate and propose a plan: They draft a re-arrangement proposal with reduced instalments (and often concessions on interest/fees) and coordinate a court/tribunal order that makes it binding.
Payment via a PDA: You pay one instalment through an NCR-regulated Payment Distribution Agent, which then disburses funds to each creditor per the order.
Clearance at the end: When you’ve satisfied the order’s obligations (or qualify for the mortgage-only route), your counsellor issues a Clearance Certificate (Form 19) and notifies credit bureaux to remove the “under debt review” flag.
Are debt counsellors regulated?
Yes. A debt counsellor must be a registered individual (not a company) and meet NCA training/competency requirements before being authorised by the NCR. You can verify any counsellor on the NCR Register of Registrants. Many consumers also check DCASA membership for added credibility.
How to verify a debt counsellor (60-second check)
Ask for their NCRDC number (e.g., NCRDC1295).
Look them up on the NCR Register (search by name or NCRDC).
Optional: check DCASA’s guidance on verification and professional conduct.
Red flags: reluctance to share NCRDC; asking you to pay them directly (instead of the PDA); promising “instant clearance” without Form 19. (The NCR and DCASA routinely warn against such practices.)
The debt review journey with a debt counsellor (step-by-step)
Free assessment & application (Form 16): Share payslips/bank statements and a list of all credit agreements and essential costs.
Form 17.1 notifications (≤5 business days): Counsellor alerts creditors/bureaus that you’re under assessment—this structures communication while the plan is built.
Proposal & negotiations: The counsellor balances essentials (rent/transport/food/medical) with a single affordable instalment.
Court/tribunal confirmation: Your plan becomes binding once granted.
One payment via PDA: You make a single monthly payment; the PDA distributes per the order and issues statements.
Adjustments if life changes: If income drops or expenses rise, your counsellor can propose a variation to keep the plan workable.
Completion → Form 19: Debt Counsellor verifies paid-up letters, issues Form 19 within seven days of eligibility, and notifies bureaus to remove the debt-review flag.
What good debt counsellors do differently
Explain fees upfront (within industry norms) and show how they’re built into your plan.
Prioritise essentials so you don’t fall behind on rent, transport, or school costs.
Use an NCR-regulated PDA (you do not pay into the counsellor’s personal or company account).
Communicate proactively: monthly statements, progress updates, and quick responses to creditor queries.
Plan for the exit (Form 19) from day one: keep you on track for paid-up letters and smooth bureau updates at the end.
Choosing the right debt counsellor: a checklist
Registration: Verified NCRDC number on the NCR site.
Experience: Years in practice; volumes handled; typical court timelines in your district.
PDA partner: Which PDA will handle your funds and how you’ll get statements.
Service model: Named case manager? WhatsApp/phone line? Average response time?
Transparency: Written fee schedule; sample proposal; realistic timelines (no “overnight miracles”).
Reputation: Reviews, DCASA membership, and complaint handling.
Fees—what to expect
Debt review fees are regulated/industry-guided and typically integrated into your revised instalment (rather than upfront cash). Ask for a written breakdown and where each fee appears in your first months’ distributions. (Be cautious of large cash demands or payments into private accounts, legitimate collections flow through the PDA.)
Common pitfalls (and how your counsellor helps you avoid them)
Waiting too long to apply: If a creditor starts legal enforcement before you apply (after a valid Section 129), that account may sit outside the plan under s86(2), apply early. Read more
Missing payments: Short-pays can trigger termination attempts and renewed enforcement—speak to your counsellor before a miss to arrange a variation or catch-up.
New credit during review: Applying for fresh credit breaches your plan and risks failure, good debt counsellors will warn and monitor for this.
Instant removal & scams: After a court/tribunal order, exit is via Form 19, not shortcuts; scammers can’t legally remove the flag.
FAQs (quick answers)
Is the “debt counsellor” the same as the company name?
Registration belongs to a person (e.g NCRDC1295 ). A company may employ them, but only the registered individual is the counsellor. Verify on the NCR site.
Can a counsellor receive my monthly payment?
No, you pay through an NCR-regulated PDA, which distributes to creditors and issues statements.
How long until creditor pressure eases?
After Form 17.1 notices and active negotiations, pressure drops further once the court/tribunal order is granted—provided you pay on time.
What happens at the end of the process?
Your counsellor issues Form 19 (within 7 days of eligibility) and notifies bureaus to remove the flag; always check your reports and follow up if needed.
Conclusion
Talk to a registered debt counsellor today. Share your last 3 months’ bank statements and a list of your credit accounts. We’ll do an affordability check, map one affordable instalment, and explain timelines to your debt review clearance certificate (Form 19).