For many debt counselling is a last resort when their financial life has become unmanageable. Debt counselling helps to keep the debt collectors at bay, and gives you the opportunity to get back onto your financial feet.

Once you are under debt counselling, you should have a structured payment plan in place set up by your debt counsellor. With this it should be relatively simple to stick to a budget as it has been planned for you. But what happens at the end of the debt counselling process when all your debts have been settled? How do you avoid falling into the same debt trap again?

While under debt counselling you are not eligible to take on more credit, however, once your debts have been cleared and your credit report reflect this, you will be able to take out credit again. However, it is important to be cautious.

Arthur Wasara, marketing assistant at debt counselling firm DebtBusters, stresses that after completing the debt counselling process you can borrow again and can purchase a house, car or other items on credit, as long as you meet the lending criteria of the bank or credit provider.

“It is essential to make sure that you do not rush into taking on more debt. Some people find the process of coming out of debt counselling slightly daunting as they are nervous of getting back into debt, whereas other people rush straight back into the credit process, ending up in the same situation they worked so hard to get out of.

“Trying to get by on a daily basis without incurring any additional debt can be tricky especially with the rising cost of living. It is therefore important that even after you complete your debt counselling process you draw up a budget and stick to it. You should also focus on saving and investing in order to grow your money for your future and your retirement,” says Wasara.