May 2022 Debtfree DebtBusters Special Edition
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SPECIAL<br />
EDITION<br />
STAY<br />
POSITIVE<br />
ABOUT<br />
DEBT REVIEW<br />
Issue 05 of <strong>2022</strong>
EXCELLENCE IS DOING<br />
ORDINARY THINGS<br />
EXTRAORDINARILY<br />
WELL<br />
– John W. Gardner
WHAT MAKES US<br />
EXCELLENT?<br />
/ Unimpaired and automated PDA systems<br />
/ Integration with top-ranked Debt Counsellor systems<br />
/ Enhancing Debt Counsellor efficiency and sustainability<br />
/ Best customer support in the country – queries are resolved within 24 hours<br />
/ Strong compliance and best-industry-practice implementation is at our centre<br />
Call Saishen Krishnan<br />
Head of Hyphen PDA | 071 884 7300<br />
Or call our friendly support centre on 011 303 0060 - Option 2<br />
or visit our website www.hyphenpda.co.za
FROM THE EDITOR<br />
The World Bank and UN are warning of a possible<br />
global recession. I know, you are thinking: aren’t we<br />
already in a recession? But it seems the ongoing war in<br />
Ukraine and the resulting food price pressure, as well<br />
as the inflated oil price, is combining with the massive<br />
effects of the Pandemic to tilt the scales into a worldwide<br />
downward trending economy.<br />
If you have been to the shops to buy oil or recently filled up your<br />
petrol tank, then you know how rough it is at the moment. Funny to<br />
think one day oil could cost more than oil…if you know what I mean?<br />
But that is the world we live in, we have no choice but to adapt and<br />
deal with changes.<br />
Fortunately, it is something humans are particularly good at<br />
(especially when we have no choice). You probably found this out<br />
about yourself when you began debt review. Paying off your debt is<br />
not an easy process, but when you need to make serious changes,<br />
then remarkably, you were able to.<br />
Sometimes life forces us out of our comfort zone, giving us new<br />
opportunities to try new things. It’s like if the doctor tells you to adjust<br />
your lifestyle and diet due to a medical condition you never knew<br />
about before.<br />
When you have no choice you soon find that you can actually make<br />
needed changes, because you are really motivated by how serious
your situation is. But…that doesn’t mean that your brain will not<br />
long for the “good old”, bad old days whenever you walk past some<br />
naughty, delicious looking food you should now avoid.<br />
Debt review can be the same. At the start, you can be super<br />
motivated about the process, and finally getting your debt situation<br />
sorted out. But the longer it goes on, the more pressure mounts and<br />
the more temptations come along to try to derail your progress. So,<br />
in this issue we discuss how you can stay positive about your debt<br />
review and not drop out of the process.<br />
Since this can make or break your financial future, (and perhaps even<br />
that of your kids) it is well worth testing out these tips, and see if they<br />
can help you stay strong and motivated.<br />
We also discuss changes in the industry, some news that will impact<br />
on you and your wallet and look at other tips and advice, just another<br />
jam packed issue.<br />
Change is hard, we like things to stay the same. It is more predictable,<br />
familiar and comfortable. But change can also be good. Like the<br />
change to paying off debt instead of taking on more debt. So, don’t<br />
let changes in the world around you distract you from your goal,<br />
keep up your debt review payments and soon you will enjoy a great<br />
change to being totally debt free.
FROM THE<br />
DESK<br />
RISING INFLATION,<br />
INTEREST RATES<br />
ADD TO FINANCIAL<br />
PRESSURE<br />
Important for consumers<br />
to reduce the cost of<br />
credit and protect assets.<br />
Over the past six years a<br />
material decline in disposable<br />
income and a higher debt<br />
burden are contributing to<br />
the financial challenges many<br />
South Africans are facing.
This is manifested in increased demand for debt counselling, with<br />
enquiries up 32% compared to Q1 2021.<br />
These are some of the findings in <strong>DebtBusters</strong>’ latest Debt Index. The<br />
quarterly debt report is compiled from data provided by clients who<br />
have applied for debt counselling.<br />
The analysis found that two years after the start of the coronavirus<br />
pandemic, nominal income has declined marginally. But, when the<br />
effect of cumulative inflation over the past six years is considered, in<br />
real terms South Africans have 31% less disposable income.<br />
It seems that consumers are making up the shortfall in real income by<br />
borrowing.<br />
Unsecured debt levels are 20% higher than in 2016 and for those<br />
taking home more than R20 000 a month unsecured debt has<br />
increased by 54%, which is unsustainably high.<br />
The consequence of this higher debt burden is that consumers need<br />
to spend about 62% of their take-home pay to service their debt.<br />
More alarming is that for the top two income bands debt-to-income<br />
ratios are at their highest levels in the past six years. For those taking<br />
home more than R10 000 per month the ratio is 125% and it is 150%<br />
for those with take-home income of R20 000 or more per month.<br />
Although the average loan size has increased by 27% over the six<br />
years the number of debt obligations has declined by 18%, indicating<br />
that while consumers have more debt per credit agreement, they are<br />
seeking help sooner.
This is particularly important in an environment where both interest<br />
rates and inflation are increasing.<br />
In these circumstances, consumers need to do everything possible to<br />
reduce the cost of credit and protect their assets. For those unable to<br />
do so without help, debt counselling is the best option available.<br />
While under debt counselling, unsecured debt interest rates can be<br />
reduced significantly, allowing consumers to pay back expensive debt<br />
more quickly.<br />
The number of consumers who successfully finish debt counselling<br />
today is nine times higher than in 2016. In fact, consumers who<br />
finished debt counselling in Q1 <strong>2022</strong> paid back R400 million while<br />
they were under debt counselling, showcasing the success of the<br />
programme.
DEBT REVIEW<br />
LESSON #1<br />
We all face unexpected expenses from<br />
time to time. It might be a flat tyre or a<br />
sudden medical expense.<br />
Be sure to set aside a little something<br />
each month (like your Debt Counsellor<br />
advised you to) for when these expenses<br />
come along.
No more debt-stress.<br />
Let’s get it sorted.<br />
We’ll get your interest rates right down. You’ll<br />
make one consolidated payment a month. You’ll<br />
have more cash to live on. Your assets will be<br />
legally protected. Sorted.<br />
0861 365 910<br />
www.debtbusters.co.za<br />
info@debtbusters.co.za<br />
NCRDC2484
CONTENTS<br />
STAY POSITIVE<br />
ABOUT DEBT REVIEW<br />
FEEL LIKE YOU<br />
JUST WORK<br />
TO PAY YOUR<br />
DEBTS?<br />
IMPROVING THE<br />
CONSUMER<br />
EXPERIENCE<br />
NEWS<br />
DISCLAIMER<br />
<strong>Debtfree</strong> Magazine considers its sources reliable and verifies as<br />
much information as possible. However, reporting inaccuracies<br />
can occur, consequently readers using this information do so<br />
at their own risk. <strong>Debtfree</strong> Magazine makes content available<br />
with the understanding that the publisher is not rendering legal<br />
services or financial advice. Although persons and companies<br />
mentioned herein are believed to be reputable, neither<br />
<strong>Debtfree</strong> Magazine nor any of its employees, sales executives<br />
or contributors accept any responsibility whatsoever for their<br />
activities. <strong>Debtfree</strong> Magazine contains material supplied to<br />
us by advertisers which does not necessarily reflect the views<br />
and opinions of the <strong>Debtfree</strong> Magazine team. No person,<br />
organization or party can copy or re-produce the content<br />
on this site and/or magazine or any part of this publication<br />
without a written consent from the editors’ panel and the<br />
author of the content, as applicable. <strong>Debtfree</strong> Magazine,<br />
authors and contributors reserve their rights with regards to<br />
copyright of their work.
STAY POSITIVE<br />
ABOUT DEBT<br />
REVIEW
STAY POSITIVE ABOUT DEBT REVIEW<br />
SOME PEOPLE MAKE IT,<br />
OTHERS DON’T<br />
Many people start debt review and<br />
are enthusiastic about finally sorting<br />
out their debt issues.<br />
They enjoy the relief that comes from being<br />
proactive and finding a way to settle all<br />
their debts. Their stress levels drop as credit<br />
providers stop pestering them for payments<br />
and unrealistic promises. As a result their<br />
family life receives a welcome break from all<br />
that stress.<br />
The same people may then suddenly, one day,<br />
decide to stop repaying their debt through<br />
debt review, despite a significant balance<br />
still owing. So, why suddenly decide to stop<br />
paying, after experiencing all these benefits,<br />
only to plunge their lives back into the storm<br />
of uncontrolled debt?<br />
What can help you stay positive about your<br />
debt review, and what are some negatives<br />
that could cause you to decide to stop debt<br />
review?
STAY POSITIVE ABOUT DEBT REVIEW<br />
DEBT REVIEW IS<br />
AMAZING<br />
Debt review provides consumers with a way to deal<br />
with their debt in a realistic and sustainable manner.<br />
When consumers in debt first experience debt review,<br />
it can seem like the perfect solution, not only making<br />
debt repayments possible, but even providing huge<br />
savings on fees and interest over time.<br />
The process (which is done through court) also offers consumers<br />
legal protection, and a way to protect their assets, should<br />
uncooperative credit providers ever try take legal action against them.<br />
While many debt reviews are scheduled over 5 years (which is a good<br />
balance between risk to the credit provider and reduced installments<br />
for the consumer) every debt review is tailored to the needs of the<br />
individual. A Debt Counsellor work out an adjusted and realistic<br />
budget, then assists in organizing realistic and manageable monthly<br />
repayments through a PDA.<br />
When consumers stick to the repayment plan and their monthly<br />
budget, they reduce their stress, learn to manage their finances<br />
better, progressively pay off their debts and finish their debt review<br />
totally debt free.
STAY POSITIVE ABOUT DEBT REVIEW<br />
AVOID HAVING<br />
SECOND THOUGHTS<br />
It is not uncommon for people facing big life changes<br />
to have second thoughts e.g. wedding day jitters,<br />
resigning from their job or switching accommodation.<br />
Buyers remorse can also be a reason. The term ‘buyers remorse’<br />
covers when a consumer buys a product, a new phone for example,<br />
and then has a panicky feeling that they may have spent too much<br />
or perhaps got the wrong product. Although this feeling often passes<br />
quickly, it is not uncommon.<br />
When it comes to debt review, many people who start the process<br />
suddenly panic, and think they have over committed to a legal<br />
process that locks them into paying off their debt instead of being able<br />
to try pick and choose what they pay and when they will pay it.<br />
Resulting in as many as 1 in 5 people who start the process never<br />
even making the first payment. This can leave them with a debt<br />
review status on their credit reports, but none of the benefits of a<br />
manageable repayment plan.
STAY POSITIVE ABOUT DEBT REVIEW<br />
PAYING OFF DEBT IS<br />
EXHAUSTING<br />
Having a lot of debt and having to constantly repay<br />
once you are in debt is the dark (and often hidden) side<br />
of credit use. When credit providers offer bigger credit<br />
limits, they do not discuss the stress that comes from<br />
owing more.<br />
If you have been dealing with debt, having to make hard choices and<br />
paying, paying and paying some more it can be really exhausting.<br />
When consumers enter debt review, they receive a lot of initial relief<br />
(and many benefits) but the stress of owing all that money and having<br />
to carve out a big chunk of your monthly salary remains. Sure, it is<br />
more manageable, but it still requires a lot of effort and sacrifice to<br />
pay back the money and it takes time.<br />
For some people, this ongoing stress can be overwhelming and<br />
lead to rash feelings of wanting to escape no matter the cost. The<br />
challenge is that “escaping” from debt review would be to plunge<br />
back into the total chaos and pain of the regular collections process.
STAY POSITIVE ABOUT DEBT REVIEW<br />
LEARNING TO LIVE WITHIN<br />
YOUR MEANS<br />
Most people never do a proper<br />
monthly budget. They rather<br />
blunder through most months,<br />
sort of, hoping that they are not<br />
spending too much more than they<br />
earn. This can leave them confused<br />
about their actual financial situation,<br />
and unprepared for when disaster<br />
strikes and extra costs arise.<br />
When a person enters debt review, the Debt<br />
Counsellor will make a detailed suggestion<br />
in regard to how they could better budget<br />
each month. The challenge for new clients is<br />
learning to stick to this (reduced) monthly and<br />
annual budget.
Most people who<br />
enter debt review have<br />
been over spending<br />
and making impulse<br />
purchases for a really<br />
long time. To break the<br />
established pattern of<br />
bad financial behavior<br />
is hard, really hard.<br />
While it can be hard<br />
for consumers to make<br />
these needed changes,<br />
it is also good to<br />
remember that credit<br />
providers are also<br />
having to give up on<br />
many fees and charges<br />
and lots of profit when<br />
they help, by dropping<br />
interest rates for those<br />
in debt review.
STAY POSITIVE ABOUT DEBT REVIEW<br />
BUDGET VS<br />
LIVING<br />
EXPENSES<br />
Most people find that over the years<br />
their cost of living increases faster<br />
than any increase in salary. This<br />
is common both for those in and<br />
those outside debt review.<br />
Recently one national Debt Counselling<br />
practice showed how most people have lost<br />
about 5% buying power each year since 2016.<br />
This is because inflation is growing faster than<br />
most people’s income.<br />
What this means, is that consumers who enter<br />
debt review should be vigilant in cutting costs<br />
and shopping smarter throughout their debt<br />
review, or they will eventually find they cannot<br />
keep up with their planned debt repayments<br />
and still have what they need each month (like<br />
food).
STAY POSITIVE ABOUT DEBT REVIEW<br />
SAVE FOR A<br />
RAINY DAY<br />
One of the most common things<br />
that can derail a debt review is an<br />
unplanned expense. This might be<br />
because of something like, floods<br />
in your area, being forced to move,<br />
a pay-cut at work or a medical<br />
emergency.<br />
This is why it is vital to set something aside<br />
each month towards such expenses. Your<br />
Debt Counsellor will have urged you to do<br />
so when discussing your budget. Try to save<br />
something each month.<br />
You can also talk to your Debt Counsellor<br />
or financial advisor about the availability<br />
of specialized insurance for people in debt<br />
review. There are many experts who can help<br />
you find a really affordable product that can<br />
offer you added protection.
STAY POSITIVE ABOUT DEBT REVIEW<br />
AVOID NEGATIVE THINKING<br />
& NEGATIVE<br />
PEOPLE<br />
Covid-19 has reminded us that if<br />
you spend time with sick people, it is<br />
likely that you will also get sick. The<br />
longer you are around those sick<br />
people the more likely you are to get<br />
seriously ill.<br />
The same can be said of negative people. If<br />
you spend a lot of time around such people,<br />
their attitudes will rub off on you. Their<br />
thinking will infect you with negativity.<br />
The same with people who do not spend<br />
wisely, who shop recklessly and who<br />
encourage you to stop paying off your debts.<br />
Avoid such people, they will sap you of your<br />
joy and desire to pay off your debt responsibly.
STAY POSITIVE ABOUT DEBT REVIEW<br />
AVOID<br />
GREED<br />
It is hard to watch TV, surf social<br />
media or even walk down the road<br />
without being advertised to.<br />
These days the adverts are more and more<br />
targeted, and we are exposed to a barrage of<br />
adverts for really nice things (many of which<br />
we cannot realistically afford).<br />
If we begin to focus on what we do not have,<br />
we can quickly become sad. If you begin to<br />
daydream about having lots of nice things that<br />
you cannot afford, then you will be unhappy.
STAY POSITIVE ABOUT DEBT REVIEW<br />
NEVER<br />
FORGET<br />
If you have been in debt review for<br />
some time, you may find that your<br />
family relationships have improved<br />
as you have had to deal with less<br />
stress.<br />
You are now able to answer calls from<br />
unknown numbers, and you are not worried<br />
about your boss finding out about your debt<br />
situation.<br />
As times goes by, you might forget about all<br />
the stress that you were experiencing before<br />
debt review.<br />
When some consumers think about leaving<br />
debt review early, and trying to access more<br />
credit (which they would not qualify for) they<br />
are not thinking about how they will have to<br />
face all that stress again.<br />
It is good to occasionally think about how bad<br />
things were, just so that you can focus on how<br />
good things are now.
STAY POSITIVE ABOUT DEBT REVIEW<br />
MORE DEBT CAN’T HELP YOU<br />
GET OUT<br />
OF DEBT<br />
Debt Counsellors often tell people<br />
that they can’t dig themselves out of<br />
a hole.<br />
They say this to explain the idea that<br />
consumers cannot use more debt to pay off<br />
debt. It leaves you in the same or a worse<br />
position.<br />
If someone calls you up and says that you<br />
should leave debt review so that you can get<br />
more credit, BEWARE!<br />
There are many reasons why this is untrue.<br />
Unless you recently won the Lotto, then<br />
whoever is speaking to you is misleading you,<br />
don’t fall for it!
STAY POSITIVE ABOUT DEBT REVIEW<br />
TRACK YOUR<br />
PROGRESS<br />
Imagine someone wakes you up<br />
early in the morning and tells you<br />
that you have to start running a race.<br />
They usher you to the start line, and<br />
before you are even fully awake the<br />
start pistol goes BANG.<br />
So, you start running but you have no idea<br />
how far you have to run, what the rules of the<br />
race are, or even the route, it is doubtful you<br />
would run for very long.<br />
We all like to know and understand what is<br />
happening, it is true in debt review as well.<br />
It is helpful to understand the process, to<br />
know the rules and know how far along we<br />
are towards paying off our debts.
• Getting a copy of your debt restructuring<br />
proposal can help you anticipate what<br />
the courts might order.<br />
• Getting a copy of your court order will<br />
help you know how long it will take you<br />
to pay off your debts.<br />
• Getting a monthly statement via your<br />
PDA will help you keep an eye on<br />
payments and your general progress.<br />
• While doing a review of your budget each<br />
month (maybe as a family with some<br />
homemade pizza for dinner) you can also<br />
review your progress. This gives you a<br />
sense of accomplishment.<br />
• An annual review of your circumstances<br />
and goals with your Debt Counsellor can<br />
help you stay on track.<br />
Do not go running into the dark with no idea<br />
of where you are headed, or how far you have<br />
left to go. Rather find out as much as you can,<br />
and keep track of your progress.
STAY POSITIVE ABOUT DEBT REVIEW<br />
A POSITIVE<br />
MINDSET<br />
Our mind will often focus on our<br />
challenges, we tend to fixate on the<br />
obstacles in the road. This is natural,<br />
humans are problem solvers, we like<br />
to mull over how we are going to get<br />
over, around or through problems that<br />
come along.<br />
The danger can be that problems are all we<br />
focus on, and forget about what lies on the<br />
other side of the problem. By also focusing<br />
on the good that lies ahead, we can shift from<br />
a negative or problem focused mindset to a<br />
more positive one.<br />
Remember, debt review is just the first step<br />
in building future wealth for you and your<br />
family. Debt has been weighing you down. So,<br />
getting rid of the debt will free you up to start<br />
working on a happy, more prosperous future<br />
for yourself and your family.
STAY POSITIVE ABOUT DEBT REVIEW<br />
TALK TO YOUR<br />
DEBT<br />
COUNSELLOR<br />
If you are feeling tired of repaying your debt, if you feel<br />
that you are not making any progress, or people are<br />
telling you that you should leave debt review or take<br />
on new credit, reach out to your Debt Counsellor.<br />
Your Debt Counsellor has all the facts and figures about your<br />
situation. They know what agreements are in place with your credit<br />
providers, and what your situation will look like if you suddenly<br />
stopped paying your debt review.<br />
Random strangers on the internet and perhaps even your closest<br />
friends do not have all that info. They are not in a good position to<br />
give you good advise, whereas your Debt Counsellor is.<br />
Your Debt Counsellor will likely have some sound advice for you on<br />
how to cope with stresses and the pressures you are facing. They may<br />
be able to help you get a fresh, positive perspective on your progress.<br />
So, if in doubt, give your Debt Counsellor a shout.
BREAKING<br />
NEWS
REPO RATE INCREASE<br />
The Repo Rate, which the banks borrow money at, was<br />
recently increased by the SA Reserve Bank. The latest in a<br />
series of coming increases came a little earlier than people<br />
had hoped and was a bit higher than originally expected (50<br />
Basis points instead of 25).<br />
Higher than hoped for inflation and lower than hoped<br />
for economic growth (influenced by Eskom power cuts,<br />
flooding in KZN and war in Ukraine) drove the Monetary<br />
Policy Committee to make the choice to make the, bigger<br />
than hoped for, increase sooner.<br />
This means that consumers who have debts linked to the<br />
prime interest rate (which is in turn linked to the Repo Rate)<br />
will now have to pay more for their existing debt.
ILLEGAL CREDIT<br />
PROVIDERS MUST PAY A<br />
FINE OR GO TO JAIL<br />
Two unregistered credit providers were arrested for breaking<br />
the National Credit Act. The two people (Baby Miko and<br />
Sibusisio Nyundu) had been lending out money and charging<br />
fees and interest and so they should have registered with<br />
the National Credit Regulator (NCR). They had not done so.<br />
Instead, they were offering credit to people however they<br />
liked and at whatever rates they liked.<br />
The 2 loan sharks had also been taking consumers’ bank<br />
and SASSA cards as “security” from consumers. This is illegal.<br />
The NCR and Hawks swooped in to arrest the two.<br />
Baby Miko now has the choice to pay R8000 or go to jail<br />
for 10 months and Sibusiso Nyundu can choose to spend 12<br />
months in jail or pay a fine of R10 000.<br />
Dealing with loan sharks is unsafe and can lead to many<br />
problems. If you are struggling to pay your bills and can’t<br />
get more credit then rather speak to a professional Debt<br />
Counsellor rather than turn to illegal loan sharks.
SCAMMERS ARRESTED<br />
Durban residents, Ravenda Singh and Andrew Singh have<br />
been arrested for their part in the 2018 R99 debt order scam.<br />
Father and Son, Ravenda and Andrew were arrested and<br />
charged with their role in a scam that involved R99 debit<br />
orders from November 2018 till Feb 2019. They were the<br />
directors of a call centre in KZN, called Sub User that was<br />
involved in the scam. Investigations by the banks and in<br />
conjunction with the Hawks revealed their involvement and<br />
led to their recent arrest.<br />
Overall, the Hawks think the scam involving a syndicate of<br />
operators brought in around R248 Million from unsuspecting<br />
consumers who were repeatedly hit with bogus debit orders<br />
for R99 at a time.
NCR HELP SHUT DOWN<br />
UNREGISTERED BUSINESS<br />
OFFERING DEBT REVIEW<br />
SERVICES<br />
Major Authorised Debt Mediation (based in Bloemfontein),<br />
who later rebranded to MSR Financial Solutions has been<br />
shut down by the NCT.<br />
The NCR began to investigate the company who were<br />
telling consumers they would help them deal with their debt<br />
through some sort of mediation.<br />
The company was actually trying to offer consumers services<br />
that would require them to register with the National Credit<br />
Regulator as both Debt Counsellors and Alternative Dispute<br />
Resolution Agents.<br />
They had not done so and were actually unable to live up<br />
to their promises. Complaints lead to the NCR investigation,<br />
which then lead the NCR to take the matter to the National<br />
Consumer Tribunal.<br />
The NCT handed down a big fine and ordered an audit and<br />
that consumers be repaid fees that have been charged.
DEBT REVIEW<br />
LESSON #2<br />
Remember to set aside money each month to<br />
cover annual costs such as car licenses and<br />
car services.<br />
If you forget to save a little each month during<br />
the year you might find that these costs sneak<br />
up on you and you don’t have the funds when<br />
the need arises.
FEEL LIKE YOU<br />
JUST WORK<br />
TO PAY YOUR<br />
DEBTS?
FEEL LIKE YOU JUST WORK TO PAY YOUR DEBTS?<br />
ARE YOU FEELING<br />
THE GRIND?<br />
Paying your debts every month through debt review<br />
can feel like you are not making much progress. You<br />
check your monthly statements and you see the<br />
payments going off, but feel like you are just treading<br />
water. The outstanding balances seem to take forever<br />
to get smaller.<br />
The good news is that you are, in fact, making progress with each<br />
and every debt review payment (unlike many other minimum credit<br />
repayments other people make). With the reduced fees and charges<br />
most credit providers make for those in debt review, you are paying<br />
off your debts faster than you would have before (remember skipping<br />
payments and dodging calls before you began debt review).<br />
So, you are making progress, but life can feel repetitive regardless. We<br />
can fall into a pattern of wake up, go to work, pay your debts and go to<br />
sleep. This can rob us of our joy.<br />
That feeling of every day, every week, every month being so similar, can<br />
leave us unmotivated and bored. How can we combat this feeling of<br />
being stuck in the rat race and not making progress?
FEEL LIKE YOU JUST WORK TO PAY YOUR DEBTS?<br />
ADD SOME<br />
SPICE<br />
By adding some new experiences to<br />
our weekly, or monthly routine we<br />
can get the most out of our life.<br />
Learning a new skill, connecting with new<br />
people, or going somewhere new are all great<br />
ways to add some spice to our routine.
FEEL LIKE YOU JUST WORK TO PAY YOUR DEBTS?<br />
HIT<br />
PAUSE<br />
“Life moves pretty fast. If you don’t<br />
stop and look around once in a<br />
while, you could miss it.” – Ferris<br />
Bueller<br />
Rather than letting every day slip away, take a<br />
moment or two during the day to appreciate<br />
the sun coming in through the window, look<br />
up at the clouds or really take a moment to<br />
savor your morning coffee.
FEEL LIKE YOU JUST WORK TO PAY YOUR DEBTS?<br />
DUMP<br />
MULTI-<br />
TASKING<br />
“Multitasking is overrated - I’d rather<br />
do one thing well than many things<br />
badly.” – Stewart Stafford<br />
Multitasking can trick you into feeling more<br />
productive, but it often results in you doing<br />
several tasks poorly, instead of doing one task<br />
well. Try focusing on a single task to avoid that<br />
feeling of time flying by.
FEEL LIKE YOU JUST WORK TO PAY YOUR DEBTS?<br />
KEEP AN EYE ON THE<br />
BIG PICTURE<br />
Checking your monthly statement<br />
is a good way to ensure payments<br />
went off.<br />
It can also be good to compare where your<br />
debts were 12 months, 24 months ago. A<br />
quick look at older statements, can give you a<br />
sense of accomplishment that comparing the<br />
figures to last month will not.
FEEL LIKE YOU JUST WORK TO PAY YOUR DEBTS?<br />
YOUR DEBT WON’T<br />
LAST<br />
FOREVER<br />
While you are paying off your debts<br />
now and that can get repetitive,<br />
your debt review will come to an<br />
end, and then it will be time to start<br />
building your wealth (and yes maybe<br />
buy one or two nice things and have<br />
a little extra fun too).<br />
Your time in debt review does not have to be a<br />
daily grind to just pay off your debts. By trying<br />
new things, savoring the good moments, and<br />
by keeping an eye on the big picture, you can<br />
get the most out of your time in debt review.
DEBT REVIEW<br />
LESSON #3<br />
The right time to leave debt review is not<br />
half way through. The best time is when<br />
you have successfully paid off all<br />
your debts.<br />
Your Debt Counsellor will help you with the<br />
legally required form and will inform the<br />
NCR and credit bureaus.
WWW.DEBTREVIEWAWARDS.CO.ZA<br />
The Debt Review Awards<br />
ceremony will be held in person<br />
in Cape Town this year and will<br />
be live streamed.<br />
Nominees and sponsors will<br />
be invited to the venue and<br />
everyone else will be able to<br />
watch live online.
IMPROVING<br />
THE CONSUMER<br />
EXPERIENCE
IMPROVING THE CONSUMER EXPERIENCE<br />
DEBT REVIEW TO THE<br />
RESCUE<br />
Where wings take dream...<br />
The idea of helping people find a reasonable,<br />
realistic way to pay off their mounting debts<br />
has been the dream of many governments<br />
around the world. When the National Credit<br />
Act introduced formal debt review to SA it was<br />
just in time to help temper the 2008 global<br />
financial meltdown.
IMPROVING THE CONSUMER EXPERIENCE<br />
THE DEBT REVIEW<br />
JOURNEY HAS STAYED<br />
MUCH THE<br />
SAME<br />
The idea has always been (and still<br />
is) to have a reliable, trained third<br />
party (a Debt Counsellor) examine<br />
a consumers financial situation and<br />
make a proposal to the courts on<br />
how that debt could best be paid<br />
back, in a sustainable way.<br />
While there have been many small changes,<br />
that made things easier for credit providers<br />
and Debt Counsellors to do their work over<br />
the years, the debt review experience for<br />
consumers has not changed much. Some<br />
would say the consumer experience has not<br />
significantly improved since 2007.
IMPROVING THE CONSUMER EXPERIENCE<br />
A BIG IMPROVEMENT FOR<br />
CONSUMERS<br />
One change, however, did make a<br />
big impact and helped consumers<br />
significantly.<br />
Consumers who have, for years, struggled to<br />
consistently repay all their credit providers<br />
the right amount, at the right time, can find<br />
managing all their new obligations under debt<br />
review tricky. Even one late payment or the<br />
wrong reference can derail years of progress<br />
under debt review. It is scary.<br />
This is why, when Payment Distribution<br />
Agents (PDAs) were formally included into the<br />
Credit Act consumers finally saw a dramatic<br />
improvement in their debt review experience.<br />
Rather than have to manage 5, 10 or 15<br />
different debt repayments to different credit<br />
provider’s in different amounts, and to all<br />
new account numbers, with new reference<br />
numbers, consumer could now have one<br />
payment that was sent to the PDA and the<br />
PDA would do all the hard work.
IMPROVING THE CONSUMER EXPERIENCE<br />
A BIG IMPROVEMENT FOR<br />
DC’S TOO<br />
Debt Counsellors were also happy,<br />
rather than thousands of clients,<br />
each sending the proof of payments<br />
each month, the PDA does the<br />
record keeping.<br />
Rather than paying fees for client<br />
management and workflow software, the<br />
PDAs helped make these available to Debt<br />
Counsellors. They also helped create easy-touse<br />
calculators, which can work out payments<br />
and interest charges, years in advance.<br />
Benay Sager of the National Debt Counsellors<br />
Association says that: “PDAs are an integral<br />
part of the debt counselling industry and<br />
one of the primary reasons why the industry<br />
has grown over the years. They serve a vital<br />
function of safe, secure, accurate and fast<br />
collection and distribution of consumer<br />
funds. We cannot see how the industry would<br />
function without participation and investment<br />
from the PDAs”.
Paying money to<br />
one of the 4 NCR<br />
registered PDAs<br />
also give consumers<br />
confidence that they<br />
are dealing with a<br />
reputable, trustworthy<br />
process. These days,<br />
with the prevalence<br />
of scams and empty<br />
promises, dealing<br />
with a PDA helps to<br />
give consumers the<br />
convenience as well as<br />
confidence in the debt<br />
review process.
IMPROVING THE CONSUMER EXPERIENCE<br />
MORE IMPROVEMENTS<br />
TO COME<br />
The industry is always looking to<br />
improve, find ways to make life<br />
easier for everyone. Committees<br />
and associations often meet to try<br />
find ways to do so.<br />
In the midst of all that effort, let’s never lose<br />
sight of the people who need improvements<br />
the most: The consumers on the debt review<br />
journey.
STEP-BY-STEP<br />
DREX GUIDE<br />
DREX simplifies the exchange of data and makes managing the<br />
debt review process less admin intensive.<br />
The below links take you to step-by-step guides on how to use the<br />
DC Portal on DREX.<br />
How to Register on the DC Portal<br />
Introduction to the DC Portal<br />
Accessing a Consumer's Profile