DebtSafe

Who qualifies for DebtSafe debt counselling?

DebtSafe’s current online screening asks whether you earn at least R8,000 a month and owe more than R30,000. These are provider screening criteria, not statutory minimums for all debt counselling. Its eligibility FAQ requires employment or regular, consistent income.

The assessment considers whether you can meet existing repayments while covering essential living expenses, and whether a workable revised payment remains affordable. Disclose your marital property arrangement, joint debts and any existing debt review.

Prepare your ID or passport, recent creditor statements, income and household budget details, and proof of your bank account. The application accepts a bank confirmation letter or bank statement no older than three months. Confirm any additional income documents required for your circumstances.

Supply summonses and other enforcement documents promptly. Agreements already subject to enforcement proceedings may fall outside the ordinary debt review application; obtain advice on those accounts separately.

When DebtSafe may be suitable

DebtSafe may suit someone whose debt repayments have become unaffordable but who still has enough reliable income to fund a structured plan after essential expenses. Its useful feature is coordinated negotiation and repayment administration across several creditors.

For a temporary income interruption or one problem account, ask the creditor about a hardship arrangement first. If you can still qualify for affordable credit, compare the total cost of a debt consolidation loan with restructuring your existing accounts. Additional borrowing is unsuitable when it merely postpones an unaffordable debt burden.

Without dependable repayment income, debt review may not be workable. It also needs careful consideration if you expect to finance a vehicle or home during the programme.

How DebtSafe debt review works

From enquiry to repayment plan

1. Request an assessment: Use DebtSafe’s website or telephone service. Its optional fast-track enquiry requests consent to access credit bureau information and describes the request as an indication of interest without an obligation to accept a proposal.
2. Review the formal application: Check the proposed budget, fees, mandates and consequences before accepting. A formal debt review application has legal effects beyond an initial enquiry.
3. Assessment and negotiation: A debt counsellor evaluates your position, notifies relevant parties and proposes revised repayments. DebtSafe describes obtaining a court order for the resulting arrangement.
4. Pay and monitor: Make the agreed payment and check distribution statements against creditor balances. Confirm which expenses, insurance premiums and accounts remain payable separately.

Obtain written instructions for the transition from existing debit orders to the new arrangement. Stopping payments simply because you requested a quote can create additional arrears.

How long does the programme take?

DebtSafe’s duration FAQ gives no universal repayment term. Your balances, debt types, disposable income and creditor negotiations determine the estimate. Ask for account-by-account completion dates and the expected court timetable.

Repayment support and complaints

If a payment becomes unaffordable, contact DebtSafe before it falls due: 0861 100 999 or info@debtsafe.co.za. Its Client Care form states a response within two business days. An enquiry does not suspend payment obligations.

Keep copies of complaints, payment statements and responses. Unresolved debt counselling complaints can be referred to the National Credit Regulator at dccomplaints@ncr.org.za or 0860 627 627.

Questions to ask before accepting DebtSafe’s plan

• Who is my responsible debt counsellor, and what is their individual NCR registration number?
• What is the full monthly debit, including VAT, insurance, aftercare, payment distribution and collection charges?
• How much reaches each creditor during the first three months, and when do fees finish absorbing the early payments?
• Which reduced rates have creditors accepted, which remain proposals, and what are the projected total repayments and completion dates?
• What authority am I granting over insurance replacement, financial information and debit orders? Which optional services can I decline?
• What happens if my income falls, a creditor opposes the proposal, or I want to transfer to another counsellor?

DebtSafe advantages and limitations

• Free initial assessment: You can explore whether restructuring is viable before accepting a formal proposal.
• Coordinated repayment administration: Negotiation and payment distribution can simplify managing several debts.
• Substantial entry costs: Restructuring and legal charges need to be assessed alongside the advertised monthly saving.
• Restricted borrowing and exit: Formal debt review affects access to credit and cannot be treated as a subscription you cancel when convenient.
• Conditional protection: Protection from enforcement depends on the legal position and compliance with the arrangement. Missed payments can put financed assets at risk.

DebtSafe fees, interest and insurance costs

DebtSafe’s cost FAQ says fees are incorporated into instalments rather than collected separately upfront. This does not make formal debt review free.

The currently linked application agreement specifies:

• Application and administration: R350 plus VAT, payable in month one.
• Restructuring: The assessed rehabilitation amount, capped at R8,000 for a single application or R9,000 for a joint application, plus VAT. The lower amount applies.
• Legal administration: R8,800 plus VAT. Actual costs of defending a summons are excluded.
• Aftercare: 5% of the payment, capped at R450 monthly, plus VAT.
• Reckless lending assessment: R1,500 plus VAT where undertaken; the agreement provides for declining the investigation in writing.
• Payment distribution: Per creditor payment: R5 for R100–R200; R10 for R201–R500; R15 above R500. Confirm VAT treatment, other payment bands and additional collection charges.

Using the 15% VAT rate, the legal charge is R10,120 including VAT. Confirm the complete VAT-inclusive schedule in your own agreement.

Illustration of once-off costs

Editorial calculation, not a quotation: If the restructuring fee is based on a R4,000 rehabilitation amount, application and administration, restructuring and legal charges total R15,122.50 including VAT: (R350 + R4,000 + R8,800) × 1.15. This excludes any reckless lending assessment, ongoing fees, insurance, creditor interest and debt repayments. It illustrates service costs, not the total cost of completing debt review.

A smaller instalment does not necessarily mean a cheaper outcome. Interest continues according to the relevant agreements and accepted concessions, while a longer repayment period can increase total interest and recurring charges. Request a complete repayment projection.

CreditGuard and existing credit life cover

FinSafe offers CreditGuard policies whose premium forms part of the monthly debt review payment. Confirm which existing agreements require cover and obtain a comparison before replacing an existing policy.

The application’s insurance summary includes waiting periods and exclusions. It describes a three-month retrenchment waiting period, with an exception for replacing existing cover, and excludes voluntary retrenchment. Pre-existing medical conditions and pregnancy can also affect claims. Obtain the full policy wording, personalised premium and written confirmation of replacement exceptions; cover does not apply to every loss of income.

Is DebtSafe worth considering?

DebtSafe is worth assessing if you need coordinated help with several unaffordable debts and can sustain a revised payment. Its strongest feature is managing negotiations and repayments through one process. Its main cost limitation is the combination of restructuring, legal and ongoing charges.

Compare its written proposal with another debt counselling service using the same balances and household budget. The decisive comparison is the total payment commitment, creditor allocations and realistic completion date, alongside monthly affordability.

DebtSafe debt counselling FAQs

Does DebtSafe provide a consolidation loan or restructure my existing debts?

DebtSafe’s debt counselling service restructures existing debts without advancing new money. Your creditors remain owed, with payments distributed under the revised arrangement. A consolidation loan instead replaces selected debts with a new credit agreement. When comparing the options, check the total repayment, fees and settlement dates. A lower combined instalment can result from extending repayment rather than reducing the amount you ultimately pay.

How should I compare DebtSafe’s fees with another debt counsellor’s quote?

Compare the complete fee schedule and creditor payment allocations, not just the monthly debit. DebtSafe’s published agreement lists a legal administration fee of R8,800 excluding VAT, alongside restructuring and ongoing charges. Application and restructuring fees fall due in month one; legal fees are payable from month two onwards. Ask each provider how much reaches creditors during those early months, whether insurance is included and what additional legal work costs. Fees deducted through instalments still form part of your total payment commitment.

Can I qualify with bad credit, and does DebtSafe have minimum income or debt requirements?

A poor credit record does not automatically exclude you: debt counselling assesses whether your existing commitments are unaffordable and whether a revised payment is sustainable. DebtSafe’s online enquiry screens for monthly income of at least R8,000 and debt above R30,000. Meeting those figures does not establish eligibility. If you fall outside its screening criteria, ask another NCR-registered counsellor about their requirements or discuss payment arrangements directly with your creditors.

Can I join DebtSafe while unemployed, and what happens if I lose my job later?

DebtSafe requires employment or regular, consistent income; another dependable income source needs individual assessment. Losing employment after joining is a separate issue. If you hold qualifying CreditGuard cover, the published summary describes up to 12 months of instalment benefits for covered retrenchment. A three-month waiting period generally applies, with a stated exception for replacing existing cover; voluntary retrenchment is excluded. Confirm your policy terms and contact the counsellor and insurer promptly. A pending claim does not itself suspend repayments.

Will DebtSafe protect my home and car if creditors have already started legal action?

Protection depends on the account’s legal status and compliance with the repayment arrangement. Debt review does not automatically reverse proceedings already underway, and defaulting under a rearrangement can expose you to enforcement. Send DebtSafe any summons, judgment or repossession notice before accepting a proposal. Its legal fee agreement excludes the actual costs of defending a summons, so ask whether your case needs separately charged representation. Compare this scope of assistance when assessing another provider’s legal fee.

Can I cancel DebtSafe debt review or move to another counsellor?

Changing counsellors and leaving debt review are different processes. A transfer can address service problems, but does not remove your debt review status. Obtain written confirmation of outstanding fees, document handover and payment arrangements before transferring. For withdrawal, DebtSafe’s FAQ describes an option before Form 17.2, but the NCR’s guidance effective from 7 March 2022 removed voluntary withdrawal after a valid formal application, including before that form. Your lawful exit route depends on your assessment and court status; stopping debit orders does not end debt review.

Must I repay my entire home loan before DebtSafe can issue clearance?

A remaining mortgage does not necessarily stop you qualifying for clearance. The other relevant debts must be settled, the mortgage must have no arrears under its rearrangement, and you must demonstrate the ability to meet its future obligations. Ask DebtSafe to distinguish the projected clearance date from the mortgage’s final repayment date. This matters when comparing proposals: a long mortgage term need not mean remaining under debt review for that whole period. Confirm the mortgage instalment that will apply after clearance.

What will disappear from my credit record after DebtSafe issues clearance?

The debt review flag and qualifying adverse information must be removed when the credit bureau receives the clearance certificate. However, the NCR’s June 2025 guidance says payment history remains subject to the applicable retention periods. Clearance therefore does not mean deleting your entire borrowing history or receiving a particular score. When comparing providers’ credit-repair claims, ask whether they mean statutory clearance, correcting inaccurate records or a separately charged service. Future lenders still assess affordability and credit risk.

Can I finish DebtSafe’s programme early, and how should I compare repayment timelines?

DebtSafe says you can arrange additional payments through your counsellor to shorten the programme. Ask which account will receive the extra money and request an updated completion estimate. When comparing proposals, use the same debt balances and realistic household budget, then compare accepted interest concessions, fees and account settlement dates. A shorter projection based on a payment you cannot sustain is not a useful improvement. Equally, the smallest monthly instalment may keep you paying interest and recurring fees for longer.