Debtfree Magazine Issue #10 2020 by Debtfree Magazine

LIVING ON LESS Issue 10 of 2020

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FROM THE EDITOR Does it feel to you like we are all just trying to make it to the end of the year as if it is some sort of invisible finish line that if we can just cross everything will somehow be better? You probably feel that way. Most people report feeling the same way. While this is a pretty common feeling most years, as the harsh realities of most year wear us down and make us long for some time off and a seeming fresh start, 2020 feels specialâ&#x20AC;Śand not in a good way. After

all, we have had a global pandemic which has tragically claimed over 1.1 million peopleâ&#x20AC;&#x2122;s lives and had 41 million more worldwide infected and feeling sick. Now people are talking about the â&#x20AC;&#x153;second waveâ&#x20AC;? which has seen a spike in deaths across Europe and other areas as people grow tired of all the Covid-19 precautions. It would, however, be naive to think that just because the calendar rolls over another month that the virus and all the ramifications of the lockdown will suddenly disappear. It may provide a small psychological break but little will change economically and in terms of the pandemic. In fact, 2021 is going to be a hard, hard year regardless of if there will be vaccines or not. If you have made it this far through the year, then: well done! If you have managed to somehow cut back on your spending while waiting for things to pick up again, you may have noticed that things are picking up but unfortunately a lot slower than most people would like to see. Businesses continue to shut and workers continue to be retrenched. SA has had well over 2.2 million retrenchments recently. Your family might have already been impacted or may soon face the impact of less household income. Either way, this year has taught us all that we need to learn to live on less. This issue we delve into how you can do that. We discuss everything from finally doing that budget you keep promising you will get around to, to learning how to have fun on less income. We have tips and advice that will help you avoid many common mistakes people make when their income reduces. We also look at how you can deal with the impact of sudden health problems on yourself or those close to you. We hope these articles will help you through a rather difficult and all too common situation.

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It is important to stay positive. That feeling of chasing a new year and new opportunities is a valid goal. We all need to feel optimistic about the future even though we may have challenges ahead. It is also important to take appropriate steps to help you have valid reasons for future optimism. For many, this has meant wisely adjusting to living on less while also turning to the amazing debt review process. Here we also say: well done to you! This has enabled hundreds of thousands of clever consumers to not only have enough to make ends meet each month but also work towards the rewarding finishing line of finally being totally debt free.

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LIVING ON LESS

BAD REASONS TO BE IN DEBT

BUDGETING

SUDDEN HEALTH CHALLENGES

SERVICE DIRECTORY

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C O N T E N T S

BREAKING NEWS

2 MILLION LOST THEIR JOBS AS LOCKDOWN STARTED As the statistics of the impact of the lockdown and pandemic are starting to be come available it was sad to see that 2.2 million people lost their jobs in the first 3 months of the lockdown. Out of 59 Million South Africans only 14 million currently have work (and contribute to the tax base). It is estimated that as many as a million more will have lost their jobs during the following months of the lockdown as the economy ground to a halt.

DEBT COUNSELLORS TO SUBMIT STATS Debt Counsellors are reminded that it is almost time to submit their obligatory statistical returns to the National Credit Regulator (NCR) once again. The latest report they are asked to submit is in regard to the time period between 01 July 2020 till 30 September 2020. The stats can be sent as usual to: dcreturns@ncr.org.za. The report is due on the 15th of November2020

FAMOUS PREACHER ARRESTED OVER FRAUD, IMMIGRATION & MONEY LAUNDERING The famous leader of the Enlightened Christian Gather Church (ECG) was arrested this month over new allegations of money laundering. His co accused (The Mudolo couple) were arrested by the Hawks while at the airport and there are allegations that Mr Shepard Bushini (known as Prophet Bushini) was also trying to evade arrest before finally handing himself in. Shepard is often identified as the richest preacher in all of Africa. In the past there have been money laundering charges relating to R15 million but the latest charges brought by the Hawks amount to another R102 million. The ECG claim this is just another attack on the church and are standing firmly behind their leader. Additional charges in regard to Mr and Mrs Bushini have now also come to light and some officials at the Department of Home Affairs have been suspended and face an investigation over allegations of irregularities in connection with the Malawian coupleâ&#x20AC;&#x2122;s permanent residence status in South Africa.

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JP MORGAN FINED R15 BILLION FOR MARKET MANIPULATION A massive fine has just been paid by JP Morgan after years of ducking and diving responsibility for the actions of several of their traders. The Record setting $920 Million fines is part of an agreement where the bank admits guilt and avoids prosecution in regard to further charges in the US. Court cases and litigation against JP Morgan and as many as 20 other banks around the world has been going on for years in regard to market manipulation which occurred over nearly a decade. South Africa’s Competition Commission has such actions open against JP Morgan and many other banks. It is likely that the actions of the 5 named JP Morgan employees, as well as other bank’s employees, saw the Rand take massive knocks in value over the years as traders created fake trade offerings and later took them back to get other investors to buy and sell under false pretenses. Secret communications between traders at different banks helped coordinate the trader’s efforts to drive prices up or down to suit their plans and make them all a lot of money. By agreeing to pay the massive fine JP Morgan now avoid further prosecution in the USA in regard to 3 other charges brought by the Commodity Futures Trading Commission (CFTC). To ensure they don’t end up having to pay more in

LIVING ON LESS

INTRODUCTION Has 2020 been the year that tipped the scales and forced you to learn to live on less, or is it just the latest in a long line of tough years for you? If so, take heart, you are not alone. World-wide, prices are increasing and incomes are decreasing. More and more people are finding themselves swamped by debt that seems to be growing out of control. At the beginning of the lockdown, some people went without income for weeks, then months and a wave of retrenchments has hit South Africa. Over 2.2 million people lost their jobs in the first part of the Pandemic, and that number continues to grow. This means that many families are forced to live on less. The last few months have taught everybody, everywhere that circumstances can change suddenly and seriously overnight. Factors beyond your control can have a seriously negative impact on your ability to make ends meet. People everywhere are now forced to learn to live on less, including those already in debt review. How can you weather this storm that began in 2020 and looks set to be around for some time to come? Letâ&#x20AC;&#x2122;s look at some advice that can guide you in the months ahead, and also consider a few tips that may help you adjust to living on less.

LIVING ON LESS

ADJUSTING YOUR MINDSET WHEN YOUR CIRCUMSTANCES CHANGE One of the common reasons people let their financial situation spiral out of control before seeking help is because itâ&#x20AC;&#x2122;s hard to adjust the way we think about our debt.

ADJUSTING YOUR MINDSET WHEN YOUR CIRCUMSTANCES CHANGE

GETTING PROFESSIONAL ASSISTANCE Many people feel that asking for help, is a sign of weakness. They would rather suffer, and let their situation get worse than seek professional help with their finances. This is, of course, different to how they deal with other similar situations. If they are ill, the very same person will not hesitate to go to a professional health care worker for assistance. If they have toothache, they will not hesitate to go to a dentist. If their problems or symptoms lasted more than a day or two, after Googling their symptoms, they will soon pick up the phone and make a doctor or dentist appointment. Getting financial advice (from a Debt Counsellor, for example) is also a sound course of action when a situation cannot be effectively handled by yourself. What would be a poor decision is getting such advice or help from unregistered individuals who could potentially make matters worse. Always deal with professional, properly trained and registered Debt Counsellors. The National Credit Regulator has a database of contact details on their site of all registered Debt Counsellors. You can find similar info on www.debtreviewawards.co.za or in the back of each issue of Debtfree Magazine.

ADJUSTING YOUR MINDSET WHEN YOUR CIRCUMSTANCES CHANGE

THE IMPORTANCE OF A POSITIVE ATTITUDE Another factor that prevents people from getting the help they need, is an unfounded optimism that in some totally unrealistic, undefined and unfounded way, their situation will just somehow â&#x20AC;&#x153;get betterâ&#x20AC;?. While a positive attitude is helpful, it does need to be balanced with an experienced and realistic view of the likelihood of the situation improving. Most times, a more realistic option requires a mental change. The change to realizing that you are now earning less, and must adjust your lifestyle. This is not an easy thing to do. Sadly, many people who, through circumstance, find their income suddenly reduced, carry on living as if nothing has changed. They often delay in making needed cuts and adjustments to spending for so long, that they make their situation much more difficult to deal with. Credit cards get maxed out, loans are made to try to maintain a lifestyle they can no longer afford. If they were in a financial hole before, they have now dug themselves deeper into the hole, and made it much harder to

ADJUSTING YOUR MINDSET WHEN YOUR CIRCUMSTANCES CHANGE

A CHANGED MINDSET The best, but often difficult course of action requires mentally acknowledging that your situation has changed, and you need to adjust to match the situation. ‘The best… course of action requires mentally acknowledging that your situation has changed and you need to adjust to match the situation’ It is a simple truth, that if your income has changed, you will have to adjust your spending and habits to match this new level of income. This may require some drastic changes, especially if your income has dropped drastically. The changes in your spending need to match the change in income. The bigger the drop the more you are going to have to do to offset the change. If you have been hit by changes in income due to the lockdown or economic conditions, then you need to make the mental change first, before you can make effective adjustments to your lifestyle. Don’t cling to the past and make things worse. Find a professional who can assist you to avoid problems that could wreck your entire future. Why not speak to a Debt Counsellor, and get free advice on how you can adjust your spending or how you can talk to your credit providers about your situation effectively?

LIVING ON LESS

MAKE A BUDGET ALREADY You keep talking about doing it but you never do, why not? A budget is not hard work, it can be as simple or complex as you want. It can take you 2 minutes or it can take you 30 minutes if you get really detailed. If you know your figures (income, expenses and debt repayments) then it becomes easier each month. You can work out a budget in one of two ways. OPTION 1 Income less debt repayments. What is left is yours to spend on your running costs each month. This way prioritizes paying back your credit providers so they donâ&#x20AC;&#x2122;t begin to chase you for money. OPTION 2 Income less running costs. What is left is how much you have to split among your credit providers. This way prioritizes covering the things you need as a family, and then seeing which of your credit providers you can keep happy this month. Both ways work to give you a quick picture of what your finances are going to look like each month.

LIVING ON LESS

LIST YOUR INCOME If your income has changed (perhaps less now than in the past) it is important to know what your new monthly â&#x20AC;&#x153;take homeâ&#x20AC;? figure is. Knowing this figure is key to success when it comes to budgeting. Remember to factor in all your taxes and contributions each month so you know how much you actually get to take home.

CLICK HERE. See our article on how to work out an average income if you work for yourself or earn different amounts each week.

LIVING ON LESS

LIST YOUR DEBT REPAYMENTS (or single debt review repayment amount if you are already in debt review) Make sure you know what you have to pay each credit provider â&#x20AC;&#x201C; what they are asking you to pay, or what you have agreed to pay back. In some cases you have the option to pay only a minimum amount each month, but be aware that paying only the bare minimum will allow the debt to last a really long time or even grow in size. With Budgeting Option 1 - which focuses on keeping your credit providers paid: Once you know how much of your income is meant to go to the people you have borrowed money from, you will have a figure left over. This is how much you have to spend on your monthly running costs. With Budgeting Option 2 â&#x20AC;&#x201C; which focuses on keeping your running costs as similar as possible to how they were before: You are going to have to try split the left over funds between all your credit providers in a fair percentage compared to what they used to get. You will now be looking at paying the smallest amounts you can to your credit providers. You may even have to write to them to discuss smaller repayment amounts.

LIVNG ON LESS

LIST YOUR MONTHLY EXPENSES Make a list of what you normally spend on food, electricity, mobile phone(s), transport, insurance. Don’t include your debts in this section. For example. If you are repaying a bond that goes with your debts. Don’t forget your annual expenses. Add these up and divide by 12. That way you know what you need to save towards these monthly. You also should consider having a list of things you 100% need and then another list of things you would like to have (wants). Eg. You need food. You need electricity. You need to pay rent. You don’t actually need your very affordable subscription to Netflix. You want it and it may keep the kids sane but you don’t actually need it. Simply put your ‘needs’ at the top of the list and your ‘wants’ lower down. If you can see that your monthly running costs are more than you have available, then you can look at ways to reduce your spending, or set new lower limits for your spending. Eg. If you used to spend R3000 on groceries as a family, but now realize that you need to cut back, you can set a goal of only spending R2000 and try figure out how you will realistically do that at the shops.

THE DEBT REVIEW AWARDS

REDUCE YOUR SPENDING TO MATCH YOUR INCOME If you are now having to live on less, you will have to find creative ways to cut costs. Transport: Do you have 2 vehicles? Could you sell one? Could you downscale from a fancy vehicle to a cheaper one (with lower servicing costs)? Can you switch to public transport, Uber or even a bicycle? Entertainment: Can you find ways to reduce your spending in this area? Find cheaper hobbies, Read more, get outdoors and enjoy nature, find free or lower cost options of online services. Electricity & Water: Increasingly these days this cost is climbing. Can you make many small changes to keep costs down? Habits like turning the lights off, closing the tap, having short showers and opening and closing windows during the day can add up. Consider adjusting your clothing to regulate your temperature rather than using heaters or aircon. Food: Avoid eating out or small takeaways each week. Even a packet of chips and cool drink each day will add up. Make shopping lists before going to the shops, to avoid impulse spending. Plan your meals and buy in bulk to get lower prices. Buy fruit and veg that is in season to reduce costs. Could you even grow some of your own veggies?

Clothing: Only buy what you need (no more retail therapy). Shop at â&#x20AC;&#x2DC;end of seasonâ&#x20AC;&#x2122; sales or at second hand stores. Consider a clothes swap arrangement with your friends. It can be fun and breathe fresh life into your wardrobe. Quit Bad Habits: Are you spending money on gambling, smoking or alcohol each month? These habits can be expensive. Save: Rather than buying on credit (with its extra costs) save towards upcoming expenses. The longer you save the more you will realize if you really need it or not. Big Cuts Means Big Changes: If you need to save a lot you are going to have to change a lot. Can you rent out a room in your house? Can you move in with family or share accommodation? Can you move closer to work? If you have not already considered getting professional help to reduce your debt costs each month, it may be time to talk to a Debt Counsellor. Consider more extreme measures if you need to cut costs dramatically.

LIVING ON LESS

WORKING TOGETHER AS A FAMILY TO ADJUST TO LIVING ON LESS Working together as a family when living on less can really help reduce your personal stress. Trying to hide debt and loss of income from those closest to you, is very stressful and increasingly impossible to maintain. Rather, when everyone is working together to keep costs down (and maybe not complain as much about what they no longer have) it can be a huge help. Be sure to have an age appropriate conversation with your kids. Donâ&#x20AC;&#x2122;t leave them out of the loop, it will help them avoid unrealistic expectations and wastefulness. If you work together as a family to deal with your changed situation it can help keep your family strong and united by your situation rather than divided and hostile.

LIVING ON LESS

LIVING ON LESS DOES NOT MEAN A SAD LIFE Having to cut your spending is never easy. We quickly become accustomed to a certain standard of living and often tend to spend more than we earn. When you suddenly have to live on less, it could make you feel that you are going to now have a hard, sad life of poverty. This is unrealistic, millions of people live on the smaller income that you may now be earning. They may have done so for many years and have a good, happy life. If your situation has changed and you wisely adjust your spending and lifestyle quickly, you will find that you avoid the growing pressure of trying to live beyond your means on credit. By making the adjustment as a family to your new budget, you can avoid tensions and pressure at home. By wisely cutting out unnecessary spending and shopping, you can live within your means and still pay back your credit providers. Often a change in income helps you focus on what is really important in life. You could even find that the adjustments you make as a result, will help you spend more time with family and friends building lasting happy memories.

DEBT REVIEW LESSON 1

When talking to Family and Friends who do not live with you be sure to wear your facemask. It will help protect them. Donâ&#x20AC;&#x2122;t take it off or pull it down under your chin and put them at risk.

BAD REASONS TO BE IN DEBT For most people, once they begin to access credit, it becomes a permanent way of life. Eventually everything in their work and personal life becomes about earning enough money to pay back those who have given you credit. Each year thousands of other people are making use of debt review and breaking the debt cycle. They are changing their lives and futures for the better. Why do some seem to be stuck in debt, with no hope of getting out in sight? Let’s look at a bunch of “bad” reasons to be stuck in debt.

IT’S TOO HARD TO GET OUT OF DEBT This is a common view. Getting into debt is easy and quick, paying it off takes so long and is hard. It is just easier to stay as is.

USING CREDIT MAKE YOU LOOK WEALTHY & SUCCESSFUL Living a lie is cool and it’s enough if everyone thinks you are rich. That’s enough to stroke your fragile ego. They don’t need to know about the sleepless nights and stress.

YOU ARE ADDICTED TO DEBT AND NEW STUFF New stuff is nice. The newer version of the thing you already have is much better…somehow. If you don’t have it, people will think you are lame. It’s just a pity that the new one rolls around so often, and always cost more than the previous version. Time to reach for the credit card, again.

YOU GAVE UP ON GETTING OUT OF DEBT YEARS AGO Debt has just become my way of life. It has been years since you thought about trying to get out of debt, besides, why bother?

YOU NEED YOUR DEBT NOW AND WILL PAY IT OFF LATER You have other priorities right now. It is one of the goals you keep promising yourself you will get around to, but that day has not rolled around just yet. Hopefully you might get around to it before you die.

YOUR SPENDING IS OUT OF CONTROL You just can’t help yourself. Impulse spending makes you feel happy, and you can’t do that without credit. The more debt you have, the more stressed you feel so, the more you need that retail therapy.

EVERYONE HAS DEBT The entire world runs on debt. Countries have countless billions of Rands worth of debt. All your friends have debt, even rich people have debt. So, why shouldn’t you live under a mountain of debt and stress as well?

YOUR PARTNER IS NOT INTERESTED IN GETTING OUT OF DEBT Even if you wanted to get rid of your debt, your partner is not on the same page. They feel that your debt is your problem, and feel like it’s a case of: your money, my money. Not being on the same page means, you can’t effectively change the way you are spending and saving as a household.

YOU DON’T MAKE ENOUGH MONEY TO LIVE WITHOUT DEBT Only rich people have no debt right? Wrong! Most ‘well to do’ people have tons of debt and are stressed out, and ironically maxed out. It doesn’t matter how much you earn. Most people tend to spend more than they earn every month, no matter the size of their pay cheque. Maybe you feel that the money you earn is just not enough to facilitate the lifestyle that you deserve right now. So, getting into more debt is the solution to all your problems.

BUDGETING IS HARD Budgeting means actually confronting your financial situation head on, and seeing how bad it really is. Who wants to think about that? That sounds really horrible and besides…math.

IT’S SO EASY It seems that every shop, retailer, bank and credit provider are desperate to offer you credit (they are, consumer greed and instant gratification is how they stay in business). Once you have credit it is much easier to let the balance grow, than try to reduce it.

YOU DON’T HAVE A PLAN You have no idea of how to even begin to tackle your debt. You never learned about debt at school and your family never talked about dealing with debt when you were younger. None of your friends want to talk about how bad it is, and how to get out of debt. So, instead of having a step by step realistic plan you have this vague idea that you should be paying off your debt…one day…somehow.

BAD REASON TO BE IN DEBT

THESE ARE BAD REASONS If any of these reasons resonates with you please donâ&#x20AC;&#x2122;t be surprised. These are some of the most common reasons why people live for years and years in the grip of debt with no light at the end of the tunnel. Though credit can be a wonderful tool it is also one that can turn on you and leave you trapped for years if not decades of your life. You entire existence can be changed into one of working to pay your credit providers so they can make a profit while you scrape by. If you are trapped in debt with no plan, it might be time for you to talk to a professional Debt Counsellor about ways you can spend less, earn more and settle your debt faster.

DEBT REVIEW LESSON 2

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BUDGETING ON A INCONSISTENT INCOME If you earn differing amounts each week or month how do you make a budget? You may want to work out a monthly budget but find it hard to figure out what you will earn next month because you never get paid or earn the same income each week or month. Does this mean that you should give up on the idea of a monthly budget? Here is an idea for those who earn different amounts each week of the month or are self employed and have fluctuating income: 1. Add up how much you have earned each week recently 2. Then add up each week into months (4 weeks per month) 3. Add up a number of months (e.g. 3 months) 4. Now divide the total you get for those months by the same number of months

BUDGETING ON A INCONSISTENT INCOME

LET’S LOOK AT A QUICK EXAMPLE OF HOW THAT MAY LOOK Work out your income for each month EXAMPLE Week 1: Week 2: Week 3: Week 4: Total for month:

R500 R300 R10 R1000 R 1810

Do this for a few recent months Once you have the total monthly figures, (which might all be different) you need to work out what an “average” month looks like

EXAMPLE Month 1: Month 2: Month 3:

R1810 R2400 R 2100

Add them together R1810 + R2400 + R2100 = R6310 Now divide by that many months (in this case 3 months) R6310 / 3 = R2103 This gives you an idea of your recent average monthly income. It also helps you estimate what the next few months will look like. You may also know which months of the year are better or worse for your business, or type of work. i.e. which months you will earn more/ less income The more months you can predict, normally the better (except lockdown may make things weird at the moment so, watch out for that). Take into account months where there are lots of holidays (like December) as these may help or hurt your earnings. It is also key to be realistic, and not over estimate how much you are going to earn in future months. With the current Covid-19 pandemic, it is likely that the economy is going to be very weak for some time. Your employers or clients may not have lots of money to spend. Take this into account when trying to predict future earnings. It is better to expect less, and spend in line with that and then be surprised if you do end up earning more.

SUDDEN HEALTH PROBLEMS Have you or a family member been affected by Covid-19? Perhaps you have suddenly experienced another serious illness that threatens your well being. This can have major mental, emotional and financial ramifications. How can you cope? How can you deal with our own sudden health problem of? How can you help those who are close to you, who become ill to cope with the pressures it brings? Letâ&#x20AC;&#x2122;s look at some things to keep in mind, and some tips on how you can stay in debt review despite a sudden change in

SUDDEN HEALTH PROBLEMS

COVID-19 2020 will always be remembered for the start of the global Covid-19 pandemic (even though it started in China in 2019 and may continue on for some time). Millions of people have been directly affected by it, and sadly, at this point, over 1.1 million people have lost their lives to the illness. Those who have been infected by the illness have experienced a range of symptoms, and the virus has affected different people in different ways. Some have had mild body pains while others have struggled to breath. Regardless of the severity, at first the immediate impact is that those who become ill, have to self- isolate. This often means no going to work (resulting in no income for some). This also causes a lot of stress as you wait to see how sever the symptoms will become. A new phenomenon is colloquially called â&#x20AC;&#x153;Long Covid-19â&#x20AC;?. This is a form of the illness that last many weeks or even months, resulting in those affected being unable to be active for all that time.] Of course Covid-19 is the poster child of 2020, and illnesses right now, but heart disease, Diabetes, Cancer, TB and other diseases continue to take their toll worldwide at the same time as this Pandemic.

SUDDEN HEALTH PROBLEMS

GET PROFESSIONAL HELP If you had a serious medical problem, you would immediately seek professional help, itâ&#x20AC;&#x2122;s the same with dealing with debt, the sooner you start the better. If you begin to feel ill, do not delay in getting help. Rather be embarrassed if you jumped the gun than start to get treatment too late. Often being proactive and addressing an illness sooner will help you save funds on treatment later, when symptoms are more sever because you left it too long. Take time to research and understand your illness. Educate yourself and learn about treatment options. By doing this, you will be better equipped to know what to expect and what choices you have.

SUDDEN HEALTH PROBLEMS

HELP YOUR BODY & MIND BY BEING HEALTHY Regardless of what illness you are affected by, eating healthy and a regular exercise routine can help you make the best of the measure of health that you do currently enjoy. Regular sleep and investing time and effort in living healthy will be well worth the effort. You can discuss your eating and exercise options with your medical professional. These healthy habits will help both your body and mind to deal with the challenges you face.

SUDDEN HEALTH PROBLEMS

THE HELP OF FAMILY & FRIENDS Hiding an illness from your family or friends is seldom helpful. In fact, it may rob you of the emotional and practical support that you need most. You may feel that you do not want to worry those close to you, but be assured that they would like to know so that they can try to assist you. One of the best ways they can help, is simply being able to openly and honestly communicate with you about how you feel and the stress the illness has brought into your life. Remember that if you have a communicable illness (can be spread to others, like Covid-19) it is wise to warn them and avoid direct contact. This will help protect them from the illness and could save lives. Many of your family and friends will want to help, but may not be sure how they can do so. Communicate well and make it clear exactly what they can do to assist you. By asking for specific things and even laying down specific â&#x20AC;&#x153;rulesâ&#x20AC;? for family and friends you will help them, to help you.

SUDDEN HEALTH PROBLEMS

A POSITIVE MINDSET A positive mind set about your situation can help you stay emotionally balanced and to cope with the stress of your illness. Try to focus on the things that you can control rather than those things that are beyond your control. Avoid comparing your current situation to your past health and how others have coped with the illness. We are all unique and each person has their own journey. Set new realistic goals for yourself for your current health and circumstances.

SUDDEN HEALTH PROBLEMS

REDUCED INCOME & YOUR DEBT REVIEW It would be a cold hearted credit provider who is not able to understand that being infected with Covid-19 will negatively impact on your ability to repay your debts as normal through debt review. Debt Counsellors nationally have found that the debt review departments at the various big credit providers have been incredibly lenient and helpful during the pandemic. Through the use of what is commonly called the 17.3 process credit providers have been willing to make temporary changes to the repayment plans. If you become ill, you (or a family member) should reach out to your Debt Counsellor and discuss the financial options. They will want to gather some info and do some math, and then get in touch with your credit providers or credit life insurance providers to make arrangements. Even if credit providers, for one reason or another, are not happy to make the change willingly, it is always an option to head to the courts to force the issue (a last resort but one that exists). The National Credit Act allows for the suspension or postponement of payments on debts under certain circumstances (during debt review). Many courts are also sympathetic to this current situation and will try to assist consumers in this way.

SUDDEN HEALTH PROBLEMS

GET THROUGH A HEALTH CHALLENGE Here are some tips to help you as you assist someone close to you, who is dealing with poor health. Be a good listener - The saying goes: A problem shared is a problem halved. Your friend doesn’t expect you to solve their problem or have a wise thought for everything they say, but they will appreciate you listening to how they feel about it. Stay positive in what you say – You may not know exactly what to say but even saying a few positive words is better than nothing. If you don’t know what to say then say that and add some positive words like…”we all really care for you” or “I want you to know I am here for you”. Avoid comparing their situation to that of anyone else. Learn about your friends Illness – educating yourself will help you know what to expect and what can be done to help. Offer practical assistance often – Offer help. Then offer it again. Often those who are ill feel like they are inconveniencing others even if they really need assistance. So, offer help regularly. Don’t give up – A friend or family member’s illness may cause you problems but try to be patient and understanding. They do not want to be ill and their illness may force them to often change plans or may force you to have to change your plans. They may feel poorly and speak harshly to those around them in frustration. Don’t let these things minor irritations get in the way of offering the help that you are able to give.

SUDDEN HEALTH PROBLEMS

MAKE THE BEST OF YOUR SITUATION We can all take easy precautions to avoid Covid-19 during the pandemic, but we may still become infected. Or you may face other sudden health challenges that you never thought you would. If you have become ill, then quickly get the best help possible from both medical professionals and financial professionals (like your Debt Counsellor). Educate yourself about your illness and maintain a positive outlook for the future. Lean on family and friends by communicating well with them and take practical positive steps to make the best of your current health. If it is a family member or friend who faces such a challenge, be sure to offer what help you practically and realistically can. A sudden illness can force you to do things differently but it does not mean that you will automatically be forced out of debt review with no options. Be sure to talk to the processionals and get the help you need.

LETâ&#x20AC;&#x2122;S TALK

DEBT REVIEW LESSON 3

The statement you get from your PDA reflects how much they have paid and an estimate of the balances left. It is not a reflection of what shows at your credit providers.

What if...

YOUR CLIENT’S VEHICLE IS STOLEN OR WRITTEN OFF?

Is he really insured, and if so, properly? Could the insurer repudiate the claim because of his debt review status? As he cannot borrow, how does he replace his vehicle? Since he can’t get more credit, how does he replace his vehicle?

Meliorleaf is the first and only specialist in insuring the assets of people in debt review. We genuinely protect your clients… in partnership with you.

CALL US NOW 010 141 2799 | www.meliorleaf.co.za

MAXIMISING INSURANCE RELATED INCOME

PARTNERSHIPS How Meliorleaf partnerships with Debt Counsellors work. We keep you advised regarding your clients to ensure they are covered properly and remain covered. We remunerate you, ongoing, for what you choose to do: Some debt counsellors want to be actively involved in arranging and managing insurance relationships, and we fairly share commissions earned Some debt counsellors are also registered Financial Services Providers. They can advise clients and provide a full broking service, and are entitled to earn the full commission But, Meliorleaf understands that some debt counsellors cannot or do not want to be actively involved. However, they do want their clients to be properly insured: For these debt counsellors, Meliorleaf can provide a fully outsourced turnkey solution. What’s more, we will still provide you with ongoing remuneration on all active policies.

Are you interested in partnering with Meliorleaf? Call Sean or Elmarie today on 010 141 2799 CALL US NOW 010 141 2799 | www.meliorleaf.co.za

DEBT COUNSELLOR INTERVIEW DC Name: Jonathan Brookes DC Company Name: Debt Correct DC Company contact details: 0871531531 help@debtcorrect.co.za, www.debtcorrect.co.za What area of SA do you practice in? I have a practice in Durban, KZN How long have you been a Debt Counsellor? I became a fully registered Debt Counsellor this year (2020) and have been assisting clients for 7 months now. What did you do before becoming a Debt Counsellor? I have been and am still a practicing Attorney. If you are a busy attorney then why did you also become a Debt Counsellor? My goal is to assist members of the public to responsibly manage the repayment of the debt obligations to their credit providers. I also want to try to help educate people about how they can responsibly manage their finances. There is a serious need for this in South Africa. I am determined to help. Becoming a NCR registered Debt Counsellor is allowing me to effectively do that. What makes your business a success? Because we are a smaller debt counselling practice we are able to provide individualised service to each of our clients. Every client we have has direct contact with myself and everyone on my support team. We all take time to get to know each client well.

Where do you find new clients for your relatively newer practice? Most Debt Counsellors have said things have been quiet recently. I find that referrals are the best way to find new clients but we also try some targeted marketing to help people learn about the process and our brand. What challenge are you seeing coming from the credit provider side at the moment? Despite the difficult year that 2020 has been, i have seen great cooperation from the various credit providers throughout the lockdown. What is the biggest challenge facing Debt Counsellors at the moment? I think there is an ongoing challenge of working to help credit providers see Debt Counsellors as partners rather than the opposing party in a matter. We need to continue to develop this positive view of each other. What is the biggest challenge facing your existing clients at the moment? Due to Covid-19 and the lockdown many consumers have had salary reductions or have even lost their jobs. This seriously impacts on what they can realistically pay each month and we have been working hard to assist those that we can to stay in the process with the help and understanding of the credit providers. What advice do you have for consumers with debt stress due to the lockdown? Go and talk to a Debt Counsellor to get assistance and advice on how to meet your debt obligations. What advice do you have for consumers already under debt review? Be a diligent payer. Never miss a payment. The end goal is to pay off all your debt as soon as possible and practical.

Debt Correct D E BT

R E V I E W

S P E C IA L I S T S

The DCU will no longer be operating as of November 2020. We thank our members for their support and wish them the best!

Debt Counsellors Collective The iDDC would like to hear from members and other DCs about the struggles they face and continue to face as a consequence of the lockdown. What issues need to be escalated to the NCR?

We are looking for a member to act as Secretary for 2021. All volunteers welcome. Please let us know on the Facebook group chat.

www.allprodc.org

BDCF is Looking for volunteers to serve on the NEC in 2021.

Regional Meetings Coming In October: Gauteng 4 November 2020 @11:00am Venue: Kempton Park Golf Club VeriCred Credit Bureau attending. Port Elizabeth 11 November 2020 @10:00am B & E Conference Centre AGM The DCASA AGM will be held on 4th November 2020 over zoom Tel Number Change Please note that the DCASA office number has now changed. The new number is: 087 702 3216

www.dcasa.co.za

NDCA are ready to help consumers who are struggling with debt. Visit our site for more information

Form 42

QUESTION How do you keep you clients documents safe? ANSWER Maximus has no storage limit and all the documents are stored at client level. Always available and always safe

All professionals have professional indemnity if the unforeseen happens. Do you as a professional Debt Counselor have professional indemnity as stipulated by the ethical code?

086 111 2882

TELEPHONE 0861 112 882 FACSIMILE 086 605 9751 MOBILE 082 449 6856 EMAIL andre@in2insurance.co.za

www.in2insurance.co.za

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