Its a service to help you manage your debt.
Debt counselling is a service which helps someone who is in a lot of debt to consolidate that debt and start repaying it efficiently, as well as ensuring in future they do not get themselves into too much debt.
Efficient repayment often means lowering the combined interest rate of all your debt.
Does it cost money?
Yes. Debt counselors charge the user money. It is therefore important as a consumer to discuss your debt situation with the debt counselled before signing any agreements. In some situations, the debt counselor will not be able to help you and will end up costing you more money than they can save you.
How is it different from debt review?
Debt review is very similar to debt counselling, but it means that a debt-counselor has put together a repayment plan for outstanding debts.
What are the advantages of debt counselling?
Debt counselling, when executed properly, will mean all your outstanding debts are collated into a restructured repayment plan. This is a process that your debt counselor has to apply for on your behalf to the National Credit Agency (NCA). All creditors who you owe money to will then have to liaise with your debt counselor and will not be allowed to contact you directly.