Debtfree Issue November 2022 - DebtBusters

SPECIAL
EDITION
LEARN
FROM YOUR
MITSAKES
MISTAKES
Issue 11 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
/ Best customer support in the country – queries are resolved within 24 hours
/ Strong compliance and best-industry-practice implementation is at our centre
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Head of Hyphen PDA | 071 884 7300
Or call our friendly support centre on 011 303 0060 - Option 2
or visit our website www.hyphenpda.co.za

FROM THE EDITOR
We are almost there, the end of the year is just
around the corner and the sense that things
will be fine as long as we can just make it to the
holidays looms large.
Somewhere they are no doubt busy unthawing Mariah Carey again
and holiday tunes are beginning to make their way into the shops.
People are tired but there is a glint in their eyes that says…soon.
It has been a rough year and as we approach the end of it I
suppose we must congratulate ourselves for making it through the
wave of Black Friday adverts and still having a cent to our names.
Well done us for not spending money we didn’t have this year. And
spending money you don’t have is pretty much how everyone lives
these days. Even parastatals run at a huge loss each year. Soon we
will be spending more to make up for all the spending people at
Eskom have to do so I suppose we can’t be too smug just yet.
The mistakes of the past have finally caught up with the present
and we are all paying the (now increased) price. But mistakes
are easy to make. The trick is to survive your mistakes and grow.
So if you are kicking yourself for getting into debt in the past or

FROM THE EDITOR
perhaps wishing you had never started trying to pay off your debt
through debt review then be sure to read our article discussing
mistakes in this issue. There may be thoughts which can help you
think differently about your mistakes.
This issue we also discuss some industry specific news like
recent NCT rulings and news about credit providers and the
NCR. We also have tips for you which may well save you some
bucks at the shops in the next few weeks so, check that out as
well. We may need those bucks to pay for our electricity.
Debt review and dealing with debt can be hard. It can be tiring.
It can leave you feeling worn out and exhausted. But not dealing
with your debt can leave you totally wrecked so it is good that
you are doing something about it. Even if you have to drag
yourself through. Try stay positive.
A positive hope for the future, like a holiday or being totally
debt free can keep you going when you are tired. You just
have to remind yourself that good things lie ahead. So, please
make your payment again this month. Make plans to make your
payment early next month if you can and just keep going. You
are almost there. And hopefully almost debt free.

FROM THE
DESK
HOW TO SEEK DEBT
COUNSELLING
DebtBusters is often asked
about how consumers
should seek debt
counselling.
Our recommendation is that once
someone has decided that they
want (or need) to speak to a debt
counsellor about improving their
financial situation, they need to
look for reputable companies.

When you reach out, it’s important to verify who you are talking to.
You can find out whether someone is registered on the National
Credit Regulator’s website by searching for the counsellor’s name.
We also advise that the consumer seeking debt counselling should
feel comfortable having a tough conversation with someone about
their spending habits and how much they earn. Often consumers tell
lenders and banks what those entities wish to hear as opposed to
what really happens. We must be honest with ourselves as consumers
on what you spend money on and whether you are able to make
ends meet.
Debt counselling is voluntary. The consumer establishes that they are
overindebted, and then seek help. The debt counsellor helps them
budget. Their required living expenses, debt load is, and everything in
between are considered here.
There is no predetermined period of how long the debt counselling
process lasts. It depends on the consumers’ debt burden, whether
there are assets involved such as houses and cars and what they can
afford to repay. Being under debt review means the consumer is
protected from creditors, who will be informed, along with the credit
bureaus, that the person is under debt review.
The whole idea is that the more you can repay the faster you can get
your debt sorted and get out of debt review with full clearance.

DEBT REVIEW
Did you know...
35% of your credit score
is determined by your
payment history.

FREE BOOKLET
TO DOWNLOAD AND SHARE
How do you leave Debt Review?
How do you have the Credit Bureau remove
the Debt Review listing on your credit report?
Leaving Debt Review Is Not As Simple As To Simply Stop Paying.
Consumers can only leave the debt review process at certain times
and in certain ways.
This free e book will help you navigate this process and avoid many
of the common mistakes people make when wanting to leave debt
review.
If you are curious about how you can leave debt review properly and
with no risk to your assets then be sure to download and read this
free booklet
DOWNLOAD AND SHARE

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
LEARN FROM YOUR MISTAKES
SHOPPING
TIP
HELP YOUR
CLIENTS STAY
ON TRACK THIS
DECEMBER
CAN YOU
RESIST THE
TEMPTATION
SERVICE
DIRECTORY
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
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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.

LEARN
FROM YOUR
MITSAKES
MISTAKES

LEARN FROM YOUR MISTAKES
TO ERR IS
HUMAN
We all make mistakes. You cannot
go through life without making
many. Some mistakes are bigger
than others and some will have
larger consequences than others,
but none of us can ever say we have
never made a mistake.
Is that a bad thing? While we would like to
avoid the negative consequences of a bad
decision, we often learn from our mistakes.
For example, what toddler learns to walk
without falling down along the way?
If you watch a young child persistently getting
back up and trying again and again to stand or
walk, you quickly realise that to fall, is human,
as is getting up again.
So, let’s talk about mistakes and how we can
use our past mistakes to shape our future.

LEARN FROM YOUR MISTAKES
MISTAKES LIGHT UP
THE BRAIN
Research shows that when we make
mistakes and recognise it, our brains
light up with chemical activity.
While we may experience this as a sinking
feeling, or a face-palm moment, your brain is
securely storing the information and it makes
a leaves a big impression. Almost as if it is
saying: well, let’s not do that again.
A study, published in the Journal of
Educational Psychology, showed that making
deliberate mistakes (like writing down
the wrong answer to a question and then
correcting it) can help improve our memory.
One source says: “Mistakes are our
opportunity to grow and to gain knowledge.
Many people say that they wouldn’t have
been where they were in life without making
mistakes. The all-important part, though, is
learning from them, and understanding how
to extract the positives from something that
many view as a negative.”

LEARN FROM YOUR MISTAKES
STOP THE
BLAME GAME
When you constantly think about mistakes and try to
blame someone else, it can put you in a very negative
mind-set.
It is even harder, of course when we are the ones to blame. Accepting
that we made a mistake is very hard for some people, and they will
often try to shift the blame to others, or exaggerate other’s role in the
mistake.
For example: Taking on a lot of debt is normally something we decide
to do (for a variety of good and bad reasons). When something goes
wrong, and we struggle to repay that debt, we may get angry with the
credit providers who offered us the credit. Yes, they share some of the
blame, but are they the main reason why we have debt?
Rather than blaming others, or ourselves for our mistakes, why not
focus on making the most of the bad situation and finding the best
way forward. This is a more productive use of our brain power and
emotional bandwidth.

LEARN FROM YOUR MISTAKES
ADMIT YOUR
MISTAKES
People are more likely to forgive
others who make mistakes if they
bravely, and quickly own up to it.
Not too long ago a Pope famously said the
inquisition, and things that went on 350 plus
years ago, was a mistake. Oops. You may
not be that impressed since the organisation
waited 350 years to apologise. So, it is
normally better to promptly admit your
mistake and move on.
This can help when one member of a
household has a lot of debt that others do not
know about. It is better to openly and honestly
discuss the matter earlier (choosing a wise
time and conditions for such a conversation,
of course). Delaying such discussions will not
improve the situation.

LEARN FROM YOUR MISTAKES
GET
BACK UP
When a professional runner, who
has trained for months if not years
falls during a race, they do not
immediately say: “well, that’s it, I
can’t go on”.
No, just like that child who is learning to walk,
they get back up and get going again.
So, if you have made mistakes that have
knocked you down, then get back up and dust
yourself off, get going again.

LEARN FROM YOUR MISTAKES
DON’T DWELL ON YOUR
MISTAKES
It is good to learn from mistakes, but
to constantly dwell on them is not
healthy. Rather, cut yourself some
slack, we all make mistakes.
For example, you may have over-committed
to debt in the past. You may have taken on
debt on behalf of other people. You may have
felt your income was so secure that you could
handle a large debt burden, only to find out
later that things change and paying off debt is
much harder than getting into debt.
You cannot let that dominate your thinking
or planning. You need to acknowledge the
lessons of the past, but be able to look ahead
to the future.
Constantly dwelling on where you went
wrong would be like trying to drive a car, but
only look in the rear-view mirror. That is a
recipe for disaster.

LEARN FROM YOUR MISTAKES
DEBT REVIEW IS NOT
A MISTAKE
Debt review is not easy. Many
people start the process and then
struggle to make the changes it
requires. Living a cash lifestyle in a
credit crazy world is hard.
Most of us have learnt to use money to fix
problems. Living on less and sticking to a
budget takes a lot more work.
Still, if having debt was your problem, then
debt review is the solution not a mistake.
So, stay positive about the process even if
it is taking some time. Even if things don’t
run smoothly due to the actions of a credit
provider, or your Debt Counsellor, stay on
target.
Keep paying your debt and working towards
being debt free. It is worth it.

LEARN FROM YOUR MISTAKES
DON’T REPEAT YOUR
MISTAKES
It goes without saying that we don’t
want to make the same mistake over
and over. That would indicate that
we have not learned from our errors,
and are doomed to repeat the cycle.
Rather, we want to be able to see the problem
coming and make new, better decisions this
time around.
So, if you identify something that you have
done or tend to do that is bad for you…chose
a new way.
For example, if in the past you would always
try to use money to solve an issue quickly and
easily, you will find that when money is tight,
you are not able to do this and you have to
look for sustainable solutions.

LEARN FROM YOUR MISTAKES
IN THE
FUTURE
In the future you will pay off all your
debt, you will be debt free, amazing!
Whether you then go out and take on a lot of
debt again, or try stick to a debt free lifestyle is
up to you.
Credit use can open many doors that would
otherwise be shut. Debt can also weigh you
down again so, use the lessons you learnt
while paying off debt to shape your future.
Being over indebted (having more debt than
you can repay each month) is tough. It is a
hard and stressful way to live, and getting out
of debt takes a lot of effort.
Try to learn from the mistakes of your past to
shape the decisions of your future.

SHOPPING
TIP

SHOPPING TIP
THE BEST
DEAL
We all love to save when we shop.
After all the media pressure of Black Friday,
you may have spent money you had not
planned on, and now need to make every cent
count while at the shops. Here is a simple tip
on how to get the most bang for your buck.

SHOPPING TIP
DID YOU SURVIVE
BLACK FRIDAY
MADNESS?
A lot of people ran out during the
Black Friday excitement, and bought
many new shiny items. Most did so
on credit, with money they have
yet to earn. For some it will take
months, if not years, to pay off these
discounted specials.
When shopping, it is always good to plan
ahead and save towards the expense. If you
were one of those wise shoppers, who had
funds waiting that you had been saving up,
and if you then found a great deal: Good
for you!
Black Friday reminds us that we can all be
tempted into buying things if advertisers show
you nice new shiny toys often enough. It may
now be time to unsubscribe from all those
mailing lists.

SHOPPING TIP
THE GREAT PRICE
HIKE CUT
Beware of falling for clever
advertising, where the advert shows
the original price crossed out, and a
new lower price shown. This is very
common at big brand name shops.
Those original prices can often be ridiculously
high. Thank goodness for the discount, wow
what a saving!! But… if you look a little closer,
the “discounted” price looks a lot like the
regular price elsewhere.
The shop may be saying they slashed their
prices, but actually they are showing you a silly
made up price that no one would pay anyway,
and their discounted price is simply closer to
reality. Shops get bust doing this all the time.
Even then, with it being a more realistic price,
you may STILL want to compare that price
with what you can get from other suppliers.
DON’T FALL FOR FAKE PRICES!

SHOPPING TIP
COMPARE
PRICES
Now it might sound obvious that
when you shop you should ‘shop
around’ and find the best deal.
We know we should and with easy access
to the internet and the ability to do online
shopping, we tend to do this more often these
days when shopping for pricier items.
It is a little tricky to do, when we are already
in a shop walking the isles and shopping for
groceries for example. After all, you don’t want
to have to leave the store and walk to the
nearby shop, and then check the price only to
find out that the first store had the better price
and then have to walk back to the shop and
grab that item.
With the cost of fuel and how valuable our
time is, it doesn’t make sense to do that, even
if it might save significant money.
Here is a tip that might help:

SHOPPING TIP
TOP TIP TO HELP
YOU SAVE
Many stores now have online shopping (websites)
where you can see the prices of items that you
regularly buy. Some shoppers say they are able to use
these shopping apps and sites to their advantage.
Shopping online can be a big time saver and help you avoid impulse
buying, but there is another way you can use these apps.
What you do is go into Shop A and open Shop B’s website or app.
Now, as you shop, you can look at the prices in front of you that Shop
A is charging and compare with Shop B on your phone. There is no
need to wonder if that pack of chicken, or bag of potatoes is cheaper
at Shop B. You can find out immediately.
Wonder how much they are charging for cooldrinks at Shop B?
Check the price right away, and make an informed choice. This way
you can be confident that you are paying the right price for the right
item at Shop A and can either order the other items of Shop B’s app
or head over there later, to grab those items with lower prices.
Doing this can quickly save you a lot of money. Money that you may
not have, or perhaps could use towards paying for other things.

DEBT REVIEW
Did you know...
NCT stands for the National
Consumer Tribunal.
The NCT act much like a specialised High
Court and deal with credit related matters
(mostly between consumers and their
credit providers but also some
debt review matters).

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CAN YOU
RESIST THE
TEMPTATION

CAN YOU RESIST THE TEMPTATION
THE DECEMBER
CHALLENGE
If you are under debt review, you may find that
December can present you with a number of unique
challenges. One problem can be that you get paid early.
Why is that a challenge?
We all know money burns a hole in our pockets. We have all been guilty
of it in the past, getting your salary early in December can be dangerous.
Can you resist the temptation to not perhaps use just “a little” of those
funds for something else?
What if your friends say they want you to come over and bring some
braai meat or drinks so you can all relax. After all it is end of the year,
or maybe it is a big family reunion. So then perhaps you dip into those
funds instead of leaving them for your regular debt review payment.
You may even be tempted to think that you will just pay a little less this
month than what the court order requires.
See… it’s dangerous!!
Rather than face this nasty temptation this month, speak to your Debt
Counsellor and see if you can organise for your debt review payment to
go off earlier, when the funds come in? They will be happy to help.
And once the payment is done the temptation is removed.

BREAKING
NEWS

OLD MUTUAL – THE BANK?
Old Mutual is massive. They have a huge core business,
and hold shares in many other businesses. For a long time,
they held a majority share in Nedbank before OM split into
various smaller self-sufficient operations.
At present, they are primarily making use of Bidvest Bank’s
licence to assist their money account clients. This has
(supposedly) been a strong earner for OM. OM has around 6
million customers, and has 1.1 million digitally active clients.
The banking app has over 1 million downloads on Google
Play (for whatever that is worth). Which probably means
they have a large number of these banking clients.
But Old Mutual is not a bank…or at least they weren’t. This
status is about to change, as Old Mutual has received the
go ahead to apply for a banking licence. It is said they
have already spent around R830 million developing their
transactional banking engine, so they are very ready to
formally enter the market.
The banking licence will also allow them to accept retail
deposits (a nice way for them to get in some money to
use) and be able to closely control their banking services to
consumers. It will also allow for broader competition with
some of the large banks, which have recently entered the
insurance space.

GREEDY GOGO BUSTED
The cops in the Northern Cape have been busy busting
people illegally operating as credit providers, and breaking
all the rules in the National Credit Act & regulations.
“Operation Mashonisa” is aimed at catching small cash loan
sharks who prey on vulnerable communities, and is a joint
operation involving the NCR.
Recently, the provincial organized crime investigation unit
ran 2 raids in the Kimberly area, and arrested 2 women
(one 41 years old and the other a 70 year old) who have
been fleecing their communities. These women had been
illegally taking documents from consumers (like ID books)
and charging all sorts of incorrect and illegal fees.
The cops seized several documents and items, including
R25 000 in cash. The matter now goes to court where
prosecution and fines are likely to follow.
If anyone loans money (of any amount) for a fee or interest,
they have to register with the NCR as a credit provider, and
stick to all the rules found in the National Credit Act.

NEW ANTI-TERRORISM
LAWS IMPACT ALL
CREDIT PROVIDERS
The National Assembly has signed off on the General
Laws Amendment Bill. The bill is known as the Anti-Money
Laundering and Combating Terrorism Financing Bill and is
aimed to keep SA in line with international requirements
(which if you do not follow, you end up grey listed apparently).
The Bill will amend 5 current Acts including the Companies
Act, Financial Intelligence Centre Act (FICA), Financial Sector
Regulation Act (FSRA), Trust Property Control Act and some
parts of the Non-Profit Organisations Act.
The big change, is that these Acts will now include an updated
definition of what it means to be a ‘beneficial owner’.

The Bill next goes to the National Council of Provinces
(NCOP) for consideration (in something of a rush apparently)
then will be given to the President to sign into law – hopefully
before the end of this year (2022).
What does it mean?
It means that all credit providers (including some collections
agents who are registered as CPs) now become ‘accountable
institutions’ (as per FICA) and have to register with the FIC.
This would include anyone who lends money for a fee or
charges interest (as explained in the NCA), regardless of
their size. Yet another nail in the coffin of illegal loan sharks,
and another reason they can be fined and shut down.
It also means that once under FICA, all such credit providers
will have to have a formal Risk Management Program,
and can only onboard clients after they have done proper
screening to know their client very well.

DEBT REVIEW
Did you know...
The NCT can issue court
orders, where all credit
providers happily agree to
restructure a consumer’s
debt obligations, to help the
consumer avoid becoming
over indebted.