April 2022 Debt Busters Special Edition

SPECIAL
EDITION
BAD NEWS
OVERLOAD
Issue 04 of 2022

EXCELLENCE IS DOING
ORDINARY THINGS
EXTRAORDINARILY
WELL
– John W. Gardner

WHAT MAKES US
EXCELLENT?
/ Unimpaired and automated PDA systems
/ Integration with top-ranked Debt Counsellor systems
/ Enhancing Debt Counsellor efficiency and sustainability
/ Best customer support in the country – queries are resolved within 24 hours
/ Strong compliance and best-industry-practice implementation is at our centre
Call Chris van der Straaten
Head of Hyphen PDA | 082 557 0437
Or call our friendly support centre on 011 303 0060 - Option 2
or visit our website www.hyphenpda.co.za

FROM THE EDITOR
I don’t know about you but I think we needed these
public holidays, just to relax for a bit and deal with all
the bad news we have been hammered with recently.
Our hearts go out to those suffering loss due to the flooding in KZN
(and the aftermath), as well as those trapped in a war in Europe. Even
all the court drama between Amber and Johnny can’t distract us from
the serious nature of what’s been going on recently. A trip to the
shops to buy cooking oil almost competes with a trip to the petrol
station these days, crazy!
Then you throw load-shedding into the mix. The word is that we
might have as much as 100 days of load-shedding over the next few
months.
Maybe Eskom have the right idea though. If you become overloaded,
you cant just carry on as normal, something has to change. So you
shed some of the things weighing you down, could we learn to do
the same?
Too much debt? Well, maybe it’s time to reduce the monthly burden
by starting debt review?
Too much bad news? Well, maybe it is time to reduce our in-take?
In this issue, we focus on how we can attempt to cope with all the
bad news coming at us from every side. Don’t minimize how all this
bad news is affecting your mindset and ability to be productive.

Check out how we can avoid becoming overwhelmed. Rather find
out how to shed some of that load.
We also share tips on how to get the most out of debt review,
avoiding common mistakes as well as some financial and a little
industry related news. Just to keep you in the loop.
After a quick update on the Debt Review Awards (happening in
September this year) we discuss why someone might want or need to
change Debt Counsellors. We look at why it might be necessary, and
why we might not want to be too quick to consider this option, find
out if it is even an option.
So, in the chiller days ahead, as you sit in Eskom-induced darkness,
cooking your food on a stick over an open fire like an ancient
peasant (or waiting for your Uber Eats delivery…whatever) consider
if you could shed any excess bulk from your life. Dump that debt,
ditch those negative people, shed some lockdown weight. It will not
happen immediately, but give it some thought, make a plan.
After all, good things come to those who wait. The first time someone
tweeted to Elon Musk that he should just buy Twitter was back in
2017, and here we are. So, take your time. Enjoy some relaxing time
and don’t fail to plan (or plan to fail). Keep on paying that monthly
debt repayment, continue taking steps towards being debt free.

FROM THE
DESK
IT DOESN’T
HAVE TO BE A
FINANCIAL STATE
OF DISASTER
Debt counselling is a
proven solution for
consumers wanting to get
out of debt.
In the recent past South
Africans have experienced
more than their share of
disasters, from pandemics to
floods and the latest round of
loadshedding.

It is taking its toll. According to McKinsey & Company’s 2022
Consumer Sentiment Survey, 71% of South African consumers report
that their ability to make ends meet has declined over the past
12 months and 87% describe their current economic situation as
‘stretched’.
They are responding by cutting back on spending, delaying purchases
and substituting branded products for cheaper alternatives.
“They are also applying for debt counselling in increasing numbers,
with enquiries in the first quarter up 25% compared to the same
period in 2021” says Benay Sager, head of DebtBusters, South Africa’s
leading and largest debt counsellor.
He says that while it may seem counter-intuitive to consider the
increase as positive it points to more consumers being committed
about making changes to how they manage their financial affairs.
“The important point is that while more people are experiencing
money pressure, they are seeking help and debt counselling can be a
very effective way of easing financial tension.”
Specifically, it restructures debt, taking income and expenditure into
account and setting a realistic budget so the consumer can afford the
debt repayments.

The debt counsellor negotiates with credit providers regarding debt
repayment terms. In the case of DebtBusters, interest rates on most
unsecured debt (which includes credit cards, personal loans, retail
credit and overdraft facilities) are reduced from an average of 21.5%
to ~1.2% per annum, enabling the consumer to pay back expensive
debt more quickly.
The consumer makes one monthly payment to a payment distribution
agency, which then pays the credit providers. While under debt
counselling consumers’ assets are legally protected as long as they
keep up to date with the renegotiated debt repayments.
Sager says DebtBusters aims to get most consumers to repay their
unsecured debt within four to five years and provides a support team
to provide guidance and advice throughout the process to help
clients successfully complete the journey.
“We continue to provide assistance once people have received
their clearance certificates by putting a plan in place and a budget
that includes saving some money each month as a cushion against
unexpected events and to invest in their future.”

DEBT REVIEW
LESSON #1
Beware of adverts on social media (like
on Facebook) offering you a loan if you
are already in debt review.
Since this is illegal to do it is probably
just a scam to try to trick you out of
some money.

No more debt-stress.
Let’s get it sorted.
We’ll get your interest rates right down. You’ll
make one consolidated payment a month. You’ll
have more cash to live on. Your assets will be
legally protected. Sorted.
0861 365 910
www.debtbusters.co.za
info@debtbusters.co.za
NCRDC2484

CONTENTS
BAD NEWS OVERLOAD
NEWS
DEBT REVIEW
AWARDS
UPDATE
SWITCHING DEBT COUNSELLORS
DISCLAIMER
Debtfree Magazine considers its sources reliable and verifies as
much information as possible. However, reporting inaccuracies
can occur, consequently readers using this information do so
at their own risk. Debtfree Magazine makes content available
with the understanding that the publisher is not rendering legal
services or financial advice. Although persons and companies
mentioned herein are believed to be reputable, neither
Debtfree Magazine nor any of its employees, sales executives
or contributors accept any responsibility whatsoever for their
activities. Debtfree Magazine contains material supplied to
us by advertisers which does not necessarily reflect the views
and opinions of the Debtfree Magazine team. No person,
organization or party can copy or re-produce the content
on this site and/or magazine or any part of this publication
without a written consent from the editors’ panel and the
author of the content, as applicable. Debtfree Magazine,
authors and contributors reserve their rights with regards to
copyright of their work.

BAD NEWS
OVERLOAD

BAD NEWS OVERLOAD
SO MUCH
BAD NEWS
It seems that the only news
these days, is bad news. This can
negatively impact our mental health
and cause us increased anxiety and
stress. How can we deal with such
an overload of bad news?
It is hard to get away from bad news, news
sites, papers and your social feeds are
probably full of tragic stories about a looming
5th wave of Covid-19, the war in Ukraine,
floods in KZN, increasing cost of living, effects
of climate change, crime and more.
While it is true that these things are happening
right now, and are therefore featured in the
news, we are left with little time to process
information about one disaster before we read
about the next. Receiving such a constant
flow of negative and scary information can be
hard to deal with.

They say that the
increased detailed
reporting on wars
(in distant lands) can
make it feel like the
war is happening
around you.
We may be exposed
to pictures or video
of event unfolding
in real time. This
stimulates the ‘fight
or flight’ part of our
brains and our bodies
can actually physically
react, producing
certain chemicals. This
can lead to mental
and physical fatigue,
as if we, personally,
are trapped in that
situation.

BAD NEWS OVERLOAD
YOU NEED A
REALISTIC VIEW
It is not your imagination, things are very bad right
now…perhaps worse in the last 100 years than they
have ever been. As a species, we are in serious trouble,
that’s why things seem so extreme.
Not to dwell further on these negative things, but more people die in
South Africa during crimes every day, than in most warzones. Crime
has become a normal part of daily life for hundreds of thousands of
South Africans. Xenophobia is creating the new apartheid mentality
across the country, and people everywhere (not just SA) are protesting.
They are unsatisfied with the way things are being handled by
governments worldwide (even the very stable ones).
We all know bad news sells better than good news. A sense of dread
and horror-fascination will have people clicking additional links and
turning pages more often than some feel good story. More page
views means more ad sales and so, news outlets tend to primarily
feature bad news.

BAD NEWS OVERLOAD
HOW DO YOU TRY
TO COPE?
We are exposed to so much bad
news, and are already anxious about
those matters that when stresses
and setbacks come along in our
own lives (at work or home), it can
hit us harder than normal.
We all face challenges in our daily life, they are
unavoidable. It might be the huge weight of
debt sitting on your shoulders, health issues or
an overwhelming and unrealistic workload.
To try and take a break from such concerns,
we might decide to watch a movie or check
the news only to then be hit by reports of wars
or warnings of massive price increases. Our
TV shows may center on murder, war or social
conflict (Hollywood often mirrors what’s
happening in society). Instead of giving our
brains the break we need, we may be diving
deeper into negative influences.
So, how can we deal with all this negativity
and bad news?

BAD NEWS OVERLOAD
LIMIT NEGATIVE
NEWS
If you are drowning in a sea of bad
news, then it is time to limit your
negativity intake.
Maybe monitor how often you check negative
news feeds. We do need to stay informed, but
how often and in how much detail?
Turning off the constant tap of bad news can
offer us some respite.

BAD NEWS OVERLOAD
FOCUS ON THE
POSITIVE
Once you have limited how much
bad news you are receiving, then
you can turn on the tap of positivity.
Instead of thinking about all the bad things
that might happen, why not spend some time
thinking about all the good things and people
you have in your life?
Good friends, good food, a beautiful day,
some nice surrounding. These are all things
that can remind us of the good in the world
around us.

BAD NEWS OVERLOAD
STICK TO A
ROUTINE
A regular routine that includes
getting enough sleep at regular
times, eating meals and handling
needed chores can help your brain
feel relaxed and refreshed.
Getting stuff done, rather than procrastinating
also provides a sense of accomplishment that
is good for you.

BAD NEWS OVERLOAD
HELP
OTHERS
Lockdown forced us all to isolate
and avoid other people. Many of us
are still avoiding others due to our
fear of infection.
That’s natural and logical but isolation can
lead us to be more self-focused than normal.
This can leave us with way too much time to
focus on our own problems. This could make
us blow our problems out of proportion –a
typical ‘mountain out of a molehill’ situation.
Shifting focus to helping others around us,
maybe in our family, friends or community,
can get us out of this selfish and negative
mindset and allow us to expand our horizons.
Furthermore, helping others releases feelgood
chemicals in our brain that promotes
positive feelings and less worry.

BAD NEWS OVERLOAD
IMPROVE YOUR HEALTH
EXERCISE
Getting regular exercise can also
help us feel better.
Eating healthy and taking care of our physical
health will have long lasting benefits, and can
make us feel better right now. Most of us are
still dealing with our extra lock-down weight
(thanks Covid, now I need to go buy bigger
clothes).
Including some appropriate physical activity
into our routine can help us a lot. We look
and feel better, we accomplish a short
term goal every time we workout or go for
a walk (or run) which gives us a sense of
accomplishment.
But please give it a few months before you
start buying shirts with cut off sleeves just to
show off your “guns”.

BAD NEWS OVERLOAD
IMPROVE YOUR HEALTH
SLEEP
Getting enough sleep can really
assist us cope with our stress.
Lack of sleep reduces our ability to deal with
pressure and kills our ability to concentrate
when needed. So, make sure you get enough
rest.
If you struggle to sleep, then you should try
to set a realistic time to regularly go to bed
and wake up, and try stick to it. Over time this
pattern will help prepare your body and mind
for sleep.
Avoid TV watching or social media surfing in
bed just before you go to sleep (you know you
do…). Those bright stimulating screens are not
conducive to falling sleep.
Avoid big meals, alcohol and caffeine just
before bedtime, they don’t help you get a long
restful sleep.

BAD NEWS OVERLOAD
DEALING WITH JOB
INSECURITY
These days, unfortunately, nobody
can say their job is 100% safe. So,
how can we deal with anxiety about
job security?
Maintain a good attitude about your job,
even if it isn’t your “dream job”. Consider the
benefits you do get from your job (like a salary
that pays most of your bills).
Be a good employee; arrive on time, leave on
time. Earn your salary by giving your employer
value for money. Be industrious and reliable.
Even if you do lose your employment due to
factors beyond your control, you can then be
assured of positive recommendations for you
next job application.

BAD NEWS OVERLOAD
TAKE ACTIVE STEPS TO
REDUCE
STRESS
Like ‘bad news overload’ we can have
an overload of things that stress us
out every day. We can normally deal
with some stress, but not too much.
Can you take action to reduce some of the
causes of your stress?
Could you reduce the time you spend with
negative people?
Could you adjust your routines or living
situation to reduce stress?
Often money matters are some of our biggest
causes of anxiety. If you need advice on how
to get the most out of the money you do earn
each month, then talk to a Debt Counsellor
about budgeting and debt. They can help you
take positive steps to effectually manage your
finances.

BAD NEWS OVERLOAD
CAN WE HAVE POSITIVE MINDSET ABOUT
WORLD EVENTS?
If you have been paying off your debt, then you will
know that positive change takes real effort & time.
Worldwide, it is true that big changes are needed on almost every
level of society to deal with what is happening. Sometimes people
only react when things directly impact on them. The long-standing
social structures that are in place, often feel threatened by change,
and so they try carry on as normal, for as long as possible to avoid
discomfort or financial cost. This is often why it is the younger
generation that rebel against the status quo.
These days it seems half the rich people want to disappear into a
virtual world or jet off into space to get away from our problems. We
may also not know what to do.
It is important for us to consider what we have direct control over,
and what we don’t. Can we improve things among our family, friends,
colleagues or community?
You may not be able to control fire tornados in Australia, but perhaps
you can help a family member deal with a crisis, or provide needed
support to those less fortunate or struck by disaster.
Do what you can.

BAD NEWS OVERLOAD
NO MORE
OVERLOAD
If you have been feeling tired and worn
down by all the bad news around us,
then it is time to make a change.
Stress is unavoidable, but not always a bad
thing. Our brains are built to handle stress, but
we need to avoid being overwhelmed.
Try to reduce the amount of negative news
you get each day, while increasing the focus
on the positive things in your life. Eat healthy,
get enough suitable exercise and rest to help
you feel better.
Find ways to reduce your stress by taking
action rather than procrastinating (like by
entering debt review if you are overwhelmed
by debt stress). Focus on what you can
change in your life, and immediately around
you. Shift focus off your own problems and try
to help others, have a positive impact on your
family, friends and community.
It’s time to say “No” to bad news overload.

CONSUMER FRIEND
USES
SOFTWARE TO ENSURE
POPIA COMPLIANCE!
- Secure system-to-system data transfer (no human contact)
- Elimination of data exposure from the use of email
- Data specification is fit for purpose
POPIA COMPLIANCE IS
CRUCIAL THIS YEAR!

DEBT REVIEW
LESSON #2
SCAM ALERT
Be careful if another person calls and says
they can suddenly reduce your monthly debt
review repayment amount. Many scams
start that way. Rather talk to your own Debt
Counsellor.

BREAKING
NEWS

IMPROVED INTERNATIONAL
INVESTMENT RATINGS?
In 2020 SA was downgraded by Moody’s rating agency to
what is commonly referred to as “Junk” status. This meant
that many larger investors and funds had to pull out and
start investing elsewhere.
With the continuing pandemic, riots and political uncertainty,
the rating continued to drop during lockdown. Moody’s kept
saying things would probably get worse and worse.
Moody’s have now made a significant change and adjusted
their official ‘negative’ outlook to a much better ‘stable’ one.
This means they do not feel things are getting worse. They
will now wait and see how things progress.
These ratings were, however, made before the KZN flooding
and recent announcements regarding loadshedding.

CONSUMERS WITH BAD
CREDIT RECORDS
27 Million South Africans use credit each month. Out of
this rather large number (which far exceeds the number of
people who are employed in South Africa) 48% and have
recently missed payments.
A very large percentage of credit users have not made
payments for 3 months or more (on, at least, some of their
debts).

IMAS DEBIT ORDER
CANCELLATIONS ON TRACK
The Debt Counsellors Association of South Africa (DCASA)
recently engaged with credit provider Imas (Iemas) about
their past hesitancy to cancel debit orders on accounts
where they received a debt restructuring proposal they did
not like.
The situation has now been resolved in line with the 2009 task
team recommendation (later turned into an NCR guideline).
Another good example of how industry challenges can often
be resolved through good communication and cooperation
to the benefit of consumers in debt review.

EDCON PAID-UP
LETTERS
Consumer Friend are busy dealing with a small third-party
system related challenge where some Edcon accounts were
prematurely marked as paid up…but this was done in error.
Though the paid-up letters were made available and the
balance initially shown as zero, Consumer Friend, in order
to assist with a speedy resolution, have now asked for these
accounts to be put back into distribution via the PDAs.
In some cases the still outstanding amount is quite small
but many are between R300 – R600, according to several
Debt Counsellors that Debtfree spoke to.
What this means is that these consumers have to now be
told that the paid up letter is not accurate and they actually
still owe money to the credit provider even though they
thought they had reached the milestone of paying off the
debt. Some awkward conversations indeed.
It also means the Debt Counsellors have to take time to go
back onto the PDA system and restructure matters across
all remaining account so that the accounts get the payment
working towards the new balance. This unfortunately has
a knock on effect, in many cases, of delaying cascading
payments to other credit providers.
Consumer Friend is contacting Debt Counsellors whose
clients may have been impacted.

STEP-BY-STEP
DREX GUIDE
DREX simplifies the exchange of data and makes managing the
debt review process less admin intensive.
The below links take you to step-by-step guides on how to use the
DC Portal on DREX.
How to Register on the DC Portal
Introduction to the DC Portal
Accessing a Consumer's Profile

SWITCHING
DEBT
COUNSELLORS

SWITCHING DEBT COUNSELLORS
I MET SOMEONE
NEW
Some people wonder if it is possible
to switch from the services of one
Debt Counsellor to another.
Although this is not common or recommended,
it is possible. Let’s look at why you might want
to change Debt Counsellors, and some things
you should be very careful of.

SWITCHING DEBT COUNSELLORS
WHY WOULD YOU
CHANGE?
Some reasons for a change are more obvious than
others. For example, a Debt Counsellor may have
passed away, and this would mean that the consumer
has no one to represent and advise them.
Even if the Debt Counsellor is alive, they may no longer be practicing.
The entire Debt Counselling practice may have closed down due to
business challenges. This would mean that the consumer would have
no one to look after their interests. They would need a new Debt
Counsellor to help.
There are other reasons too. The National Credit Regulator may have
found that the Debt Counsellor was not doing their job well, and may
have asked the NCT to take away their registration (normally they will
then just decide on a new Debt Counsellor for you without asking
you, but you could chose your own).
You may be getting really poor service from your Debt Counsellor.
Even if you have spoken to them and explained the level of service
you require, you may still not be happy. You may find that they never
answer their phones or answer your emails. They may not provide
you with any advice, or help when challenges come up. So, you may
prefer to move to the services of a different Debt Counsellor who has
a good reputation.

SWITCHING DEBT COUNSELLORS
THINGS TO
WATCH
OUT FOR
If someone calls you and says they
can help you pay less towards your
court ordered debt review each
month, do not be too hasty to take
them up on their offer.
1. One reason for caution is that you
may be the target of a scammer. The
scammer may promise much lower
repayments but ask you to pay the
monthly debt repayment amount into
a new bank account (their own). They
could then run off with the money
and leave you in a lot of trouble with
your credit providers. Remember, there
are only 4 NCR registered Payment
Distribution Agents in South Africa.
Changing Debt Counsellors may not
mean changing PDAs. No change on the
PDA side of things is much safer.

2. Since debt review is done via the courts,
and the magistrates decide how much
you pay (not the Debt Counsellors who
just make suggestions) any promise
by someone to lower your repayment
cannot be guaranteed. If the matter has
to go back to court, you may have to pay
additional legal fees and the Magistrate
may still feel you can afford the exact
same repayment amount as you have
been paying. After all, your credit
providers are likely to ask the court for
the same amounts as before.
3. Many consumers have been convinced
to switch DC’s with promise of lower
instalments or even the chance to get
out of debt review. Unfortunately after
they pay some fees, they often struggle
to get hold of the company again, and
soon find out their debts have not been
paid and they are facing legal action from
credit providers. Alternatively, consumers
are told they don’t qualify to leave debt
review anyway, and must carry on paying,
but by then some credit providers may
have started new legal action.

SWITCHING DEBT COUNSELLORS
CLICK CLICK DONE
IS IT ALWAYS
THAT SIMPLE?
The NCR have a database which
records which Debt Counsellor the
consumer has signed up with. Any
change from one Debt Counsellor
to another is also recorded on this
database system. The new Debt
Counsellor clicks a few buttons and
the previous Debt Counsellor can do
the same, to speed things along.
Of course that’s the relatively easy part.
Letting all your credit providers know about
the change, and making sure they send emails
and documents to the right Debt Counsellor
(and not the old one) can present challenges.
Sometimes however, there can be some
hiccups in transferring from one Debt
Counsellor to another. The previous Debt
Counsellor may say that fees for services have
not been paid yet (so they may decline the

CLICK CLICK DONE
IS IT ALWAYS THAT SIMPLE? CONT’D
transfer) or The Debt Counsellor may refuse
to do the transfer because they are scared the
consumer is being scammed.
We spoke to Mr. Timmy van der Grijp, who
worked at the NCR (now at VDGC Consulting)
for many years, about why this can happen.
Timmy says: ”On many occasions I heard the
same Debt Counsellor arguing in favour of a
transfer, and then later that same week against
such transfers.”
Why would this be? He says its: “depending if
they were the one requesting or declining the
transfer request.”
It is not exactly a straight forward situation
(especially when it comes to outstanding
fees).
Timmy continues: ”On the one hand, it is
argued that the DC must be paid for the work
done, and on the other it is said that there is
no lien supported by law to justify any decline
of a consumer transfer request, because of
outstanding fees.”

VDGC is holding
an in-depth 2 hour
workshop on the topic
during May.
DATE: 10th May
TIME: 2pm
FEE: R100
For those who would
like to dive into the
topic you can book
online at:
www.vdgc.one

SWITCHING DEBT COUNSELLORS
TO SWITCH OR
NOT TO SWITCH?
If your Debt Counsellor has passed away, or their
business is going to stop practicing, you 100% need
to make a change. Normally, the NCR or the Debt
Counsellor themselves will assist in such cases.
If you are not getting the level of service you want from your Debt
Counsellor, do not be quick to try change. It is a complex thing and
comes with some challenges.
First, speak to your current Debt Counsellor and tell them why you
are not happy. Do not speak to a junior staff member about such a
matter - talk directly to your actual Debt Counsellor.
If you are having problems with the PDA or getting calls or letters
from a credit provider, then your current Debt Counsellor will help
you sort out the issues.
IMPORTANT: Make sure the Debt Counsellor and PDA
have your correct contact info. This can have a big
impact on receiving communication from them.

SWITCHING DEBT COUNSELLORS
PLEASE BE
CAREFUL
Change is sometimes necessary
but be careful of being lured into
making a change.
If you are thinking of making a change, ensure
that you are dealing with an NCR registered
Debt Counsellor (ask for their certificate) and
be careful if they ask you to change the bank
account you pay your debts to. Feel free to
contact the PDA and check the bank details
with them.
When considering a change be sure to go
onto sites like HelloPeter.com and read the
customer reviews about the practice. Check if
they have a professional website. If they have
lots of bad reviews, or only have a Facebook
page then please beware!

WWW.DEBTREVIEWAWARDS.CO.ZA

The Debt Review Awards Gala will be held in
September 2022.
The event will be a combination a (Covid-19 cautious) in person event
and live streamed online (a hybrid event) so that some will be able to
attend in person (in Cape Town) and others will be able to log in via
Youtube (as has been done the past 2 years) to enjoy all the action.
Debt Counsellors and credit providers will be able to oganise viewing
parties at their offices so that all can enjoy the event live.
Peer Reviews
The annual peer reviews are ongoing. All NCR registered credit
providers and Debt Counsellors are included in the review pool (and
do not have to sign up to be reviewed).
Want To Check If You Are Included? Email:
DebtReviewAwards2022@debtfreedigi.co.za
Soon communications regarding the peer reviews will transition from
only the official NCR database contact list of all credit providers and
Debt Counsellors to be supplemented by the Awards organizers
contact list. This should ensure that any who have changed contact
info or who have specifically signed up to be contacted will receive
an opportunity to review their peers.
Additional invites to participate will be provided via social media and
various credit provider and Debt Counsellor Associations and groups.

DEBT REVIEW
LESSON #3
Try to beat your own
monthly budgeting
goals.
Always try to have a little left over at the
end of each month. That way you can save
extra towards unplanned expenses.