Debt counselling is a program designed to help people who are struggling to manage their debt repayments. It involves working with a qualified professional, called a debt counsellor, to develop a plan to get your finances back on track. Here’s a breakdown of what debt counselling typically entails:

• The debt counsellor will assess your financial situation, including your income, expenses, and total debt.
• They will then work on your behalf to negotiate with your creditors for more manageable repayment terms, such as lower interest rates or reduced monthly instalments.
• The counsellor will create a consolidated debt repayment plan that fits your budget and ensures you can make your monthly payments comfortably. This plan may be legally binding through a court order.
• Often, debt counselling includes guidance on budgeting and financial management to help you avoid getting into debt again in the future.

Debt counselling can be a helpful tool for people who are feeling overwhelmed by debt and need a fresh start. It’s important to note that there may be associated fees, and you won’t be able to take on new debt while enrolled in the program

Debt review removal refers to the legal process of officially removing the debt review listing from your credit profile in order to restore your credit worthiness.

When someone is under debt review, it means they have sought assistance from a registered debt counsellor to restructure their debts because they were unable to meet their financial obligations and thus over-indebted. This status is noted on their credit profile. Read Here About Debt Counselling and the Debt Counselling Process

However, once a person has successfully paid off their restructured debts or their financial situation has improved to the extent that they can handle their debts without the aid of debt review, they may wish to have the debt review listing removed from their credit record. This process is known as debt review removal.

Debt review removal is important because having a debt review status on your credit profile can impact your ability to access new credit more especially if you were wrongfully listed under debt review.

(Lenders are not allowed to grant credit to a consumer listed under debt review in terms of The National Credit Act.)

In a nutshell, by removing the debt review status, an individual can restore their creditworthiness in the eyes of potential lenders and regain access to the credit market.