For some people, debt counselling may be the only option available to get some sort of financial relief to be able to provide for their families while they settle their debts.

However, like any process in which money is involved, debt review also has its pros and cons.

The pros

• When you are in debt counselling, you will no longer receive calls from your creditors demanding payment and they cannot take any action against you;

• Your debt is consolidated into a single and reduced monthly repayment, giving you peace of mind;

• Your budget will be tailored according to your basic needs before provision is made for debts;

• There is no permanent record of having undergone debt counselling; and 

• Your debt counsellor will come up with ways of cutting your costs and saving you money.

The cons

• Debt review costs money but the fees are regulated;

• You are not allowed to take out new credit while undergoing debt counselling; and

• Your debts might take longer to settle because you pay smaller amounts.