Frequently asked questions about debt counselling

What are my rights?

As a consumer your rights are protected via the National Credit and Consumer Protection Acts and legal procedures and processes that must be adhered to. As a consumer you MUST be included in any legal negotiations taking place that involve you and your creditors.

How does debt review work?

Debt Review empowers the Debt Counsellor (DC) to assess a consumer’s financial position and allows the DC to restructure the monthly payments going to creditors reducing these by up to 60% in need. Reductions in payments of motor vehicles and property are less at 30% and 20& respectively. In reality new contract is negotiated with all the consumers’ creditors by the DC.

What does it cost?

The costs (Fees) are governed by the National Credit Regulator ( Government) and will not exceed the total amount available to pay all debt repayments each month with a maximum of CURRENTLY R6000 once off up front in month one. Thereafter legal fees are payable in month two and in month three the creditors commence being repaid.

How do I know if I am dealing with a reputable debt councillor?

All registered Debt Councillors have a NCRDC number – Killaghy’s number is 534 - and are audited by the National Credit Regulator at least once a year. Potential clients can call the NCR directly to ascertain the good standing of any Counsellor.

How do I make a budget?

Budgets are the balancing of a consumer’s income and expenditure. Start by detailing all the income for the month and then all the expenses for the month. There should be a positive income amount left over. If not then expenses have to be trimmed taking into account Needs – what one needs to live as opposed to Wants – the luxuries/debt. Debt should not exceed 20% of the net income received, after deductions and income tax. Of your gross income 50% should cover all your fixed monthly costs including deductions but excluding debt, 30% should cover all the monthly variable living costs with 20% available for savings and debt repayments.

What behaviours should I be careful of?

Personal and Peer pressure to spend on items that you Want but do not Need to live reasonably! Ensure a stable family life – separations and divorce are costly – don’t do it!

What are the early signs that I am heading for trouble?

As soon as one becomes uncertain as to whether you will have sufficient cash flow to meet ALL monthly obligations now or in the near future, that is the time to take positive action to restructure your financial position. Talk to a Debt Counsellor on a no obligation basis for advice and assistance.

How do I speak to a friend about debt?

The economy is in a weak position right now and is a good starting point of the conversation. Over 10 million people are in financial distress so talking about it is not uncommon. Bring up the question of how the friend would think people go about getting assistance.

Will debt counselling work for everyone?

Debt Counselling works for most people who are employed and have sufficient cash flow each month to have an over indebted ratio of not higher than 70% i.e. the debtor has not less than 30c available to cover each Rand due under the original monthly payment profile. We have many consumers that have gone through the programme successfully and are now debt free.

How do garnishee orders work?

Garnishees (Emolument Deduction Orders) are Court orders granted to creditors to recover debts that are in default. There is, however, a very definite legal process that has to be adhered to including that the debtor (Consumer) be involved right from the commencement of legal action and including that the consumer consents to the matter going to Court to obtain a garnishee order. Only a Magistrate can rule on Garnishees – cannot be a Clerk of the Court - and only a Sheriff of the Court from the appropriate Court can serve such an order to the H R department where the consumer is employed.

Further Questions?

If you have a question about debt counselling or debt reviews that is not listed above, please use this form to submit it to us. We are dedicated to serving our clients and prospects, and will be happy to address any concerns or enquiries with you.

You are of course always welcome to simply give us a call if you prefer.


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Debt is a nightmare - don't go through it alone!

Avoid the uncertainty, fear and panic associated with being over-indebted!

There is a better way when you are being guided by caring professionals.


Quick Contact:


  011 704 2471

  076 114 6436

  076 575 9031

Address: 4 Ash Road Bryanston



Killaghy Business Solutions are Registered Debt Counsellors


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