Debt Counselling Property Calculator
Calculate your PDA-restructured bond and debt payments under NCA Section 86 debt counselling — including fees, monthly relief, and property protections
| Debt | Current | PDA Restructured | Relief |
|---|---|---|---|
| Home Bond | R 8 500 | R 7 169 | R 1 331 |
| Car Finance | R 3 500 | R 2 975 | R 525 |
| Credit Cards | R 1 200 | R 833 | R 367 |
| Personal Loan | R 2 000 | R 1 250 | R 750 |
| Total | R 15 200 | R 12 227 | R 2 973 |
| Fee | Amount |
|---|---|
| Counsellor — initial assessment | R 3 600 once-off |
| Counsellor — monthly aftercare | R 450/month |
| PDA distribution fee (5%) | R 611/month |
| Total over 48 months (typical) | R 54 545 |
Debt Counselling and Your Property: What You Need to Know PDA plan • Bond protection • Exit options
How to Use This Calculator
The PDA Plan tab estimates your restructured monthly debt payments under formal debt counselling — including the extended bond term, PDA fees, and debt counsellor costs. The Property During Counselling tab explains NCA Section 88(3) protection, selling options, refinancing restrictions, and exit routes.
What is NCA Section 86 Debt Counselling?
Section 86 of the National Credit Act (NCA) allows over-indebted South African consumers to apply to a registered debt counsellor for formal debt restructuring. The process is legally binding once a court order is obtained and provides comprehensive protection from creditor action. It is different from informal debt consolidation or debt administration under the Magistrate's Courts Act.
Key characteristics of formal Section 86 debt counselling:
- All credit agreements (bond, car, credit cards, personal loans) are restructured
- A single monthly payment is made to a Payment Distribution Agency (PDA)
- The PDA distributes funds to creditors according to the court-approved plan
- No new credit can be granted while under counselling
- Your home bond is typically extended to 25–30 years to reduce the monthly payment
Worked Example — Sipho and Thandi Under Debt Counselling
Sipho and Thandi have a combined income of R25,000/month. They owe: bond R800,000 at 10.25%, car R120,000, credit cards R40,000, personal loan R60,000.
Current total monthly debt: R15,200 (DTI: 61%). They applied for debt counselling.
Bond extended from 15 remaining years to 30 years — new payment R7,282 (vs R8,500 current).
Restructured total: approximately R11,200/month — a monthly saving of R4,000.
Their home is protected from repossession under Section 88(3) as long as they pay the restructured amount.
Expected clearance: 48–60 months, after which they receive a Section 71 clearance certificate.
Frequently Asked Questions
Can the bank repossess my home while I am under debt counselling?
Once a court order has been granted and you are complying with the restructured payment plan, your bond is protected from execution under Section 88(3) of the NCA. The Westwood Constitutional Court precedent confirmed that this protection applies from the date the debt counsellor files Form 17.1 with the credit providers — even before the court order. However, if you miss payments under the restructured plan, the protection falls away and the bank can proceed with repossession.
What is a PDA and what fees do they charge?
A Payment Distribution Agency (PDA) is an NCR-registered entity that receives your single monthly debt counselling payment and distributes it to your credit providers according to the court-approved plan. The PDA fee is regulated by the NCA at a maximum of 5% of each payment distributed. Common PDAs include DC Partner, Hyphen Technology, and Payprop. The PDA fee is in addition to your debt counsellor's monthly aftercare fee of approximately R450.
How long does debt counselling take in South Africa?
The typical timeline from application to clearance certificate is 36–60 months for most consumers. The process itself has several stages: application and Form 17.1 notification (within 5 days), debt restructuring proposal, court application (typically 60–120 days), and then the repayment period. Your credit bureau record will reflect the debt counselling status for 5 years after you receive your clearance certificate.
What is a Section 71 clearance certificate?
Section 71 of the NCA requires your debt counsellor to issue a clearance certificate (Form 17.W) once all debts except the bond are settled. This certificate is submitted to the National Credit Register (NCR) and all credit bureaus, which removes the debt counselling flag from your credit record. The home bond continues under its original terms (now restructured). A full clearance certificate is issued when the bond is also fully paid or settled.
Can I voluntarily exit debt counselling before the process is complete?
Yes, but only under specific circumstances. Before a court order is obtained, you can withdraw from debt counselling by settling all arrears with your credit providers. After a court order is in place, you need to apply to the court to have the debt counselling order rescinded — this typically requires you to show you can service all debts in full. The NCT can also rescind orders in certain circumstances. Exiting without resolving the underlying over-indebtedness is not advisable.