Drawbacks of Debt Counselling

If you are over-indebted, debt counselling will likely only improve your situation. However, as with all things in life, there are of course a few drawbacks of debt counselling. Below is a list, but please be sure to check out the Benefits of Debt Counselling. This way, you can make an informed decision.


What are the Drawbacks?

  • Does not necessarily stop all correspondence or phone calls from creditors.
  • Does not cover any debt secured on assets or tax arrears – although sometimes a bond can be included.
  • May take an extended period of time to settle your debts.
  • Creditors may or may not reduce their interest rates and fees – although they usually do.
  • It isn’t completely free, as you will have to pay fees to enter the process – although we will ensure you can afford them.
  • It’s not a quick fix– it requires commitment and sacrifice on your part. You may have to make lifestyle changes such as downgrading your car or giving up your paid TV subscriptions and other luxuries.
  • While you are undergoing this process, you are not allowed to access your existing credit or take out new credit agreements.
  • You may have to attend court to get a consent order for a new agreement – although this is unlikely.
  • Despite all of your efforts, there is a possibility that your creditors may not agree to the new agreement, so another court application may have to be made.


All things considered, this process is generally more advantageous than harmful. As it provides you with immediate financial relief and starts you on the path to becoming debt free. It also prevents you from losing your hard-earned assets or having your salary garnished.

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