Debtfree Magazine (Augist 2019) by Debtfree Magazine

SOUTH AFRICAâ&#x20AC;&#x2122;S DEBT COUNSELLING MAGAZINE

DEBT INTERVENTION WHAT WE KNOW SO FAR...

August 2019 www.debtfreedigi.co.za

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DEBT REVIEW EXPLAINED Debtfree Magazine asked Blue Star Consultants to tell us what debt review and debt counselling is all about. Here is what they had to say: Debt review is a debt solution targeted at South African consumers who are over indebted and struggling to meet their debt obligations. South Africa is one of the most indebted countries in the world and the government recognized the need to take action. Debt Counselling first became a profession in the 2007 when the National Credit Act (NCA) was instituted. The NCA introduced debt review as a possible measure which could help consumers, who are deep in debt, avoid being placed into personal administration or having to deal with the legal repercussions such as repossession, blacklisting, summons, judgements etc. When entering debt review, first your income, living expenses and debt obligations will be taken into account. Then the NCR registered Debt Counsellor assesses your circumstances and begins negotiations with your creditors. Good Debt Counsellors, such as those of Blue Star Consultants, are experts in reducing interest rates and fees; and negotiating a lower monthly

instalment for their clients. Once the negotiations have been completed, a new debt repayment arrangement is drawn up which allows the consumer enough breathing room to comfortably meet their monthly living expenses. An attorney takes the agreement to the Magistrateâ&#x20AC;&#x2122;s Court to ensure that you receive legal protection under the National Credit Act and that your creditors have to stick to the new arrangement. The Debt Review process does not have to be a daunting one. A good Debt Counsellor will hold your hand throughout the entire process so that there are no unexpected surprises. Most importantly however, Debt review should be considered as an educational process. At Blue Star Consultants, our expert financial consultants will draw up a new and affordable budget that will assist you with managing your money properly. Debt review will give you peace of mind and reduce your stress, as your debt situation will be under control and you will be legally protected.

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Don’t you love new stuff? That new car smell. That feel and look of a new outfit. New stuff is often exciting. Of course, the excitement eventually wears off. The new car owner who at first polishes his car each weekend eventually begins missing cleaning sessions and after some time once the car is dented, rusted and generally dusty they are a little less in love with their car than they were at first.

The good news is that there is another new exciting debt relief measure that has been signed into law and people are once again going bananas over it. It is called debt intervention and this month we take a look at what we know about the process now that amendments to the National Credit Act have finally been published in the Government Gazette.

Now, it is important to state that we don’t have all the details since we don’t know exactly when it will start and the regulations have not been published but… it is new and new is It was that way when debt review first exciting. came out back in 2007. It was new and exciting and people expected Don’t expect it to solve your issues it to save the economy and save though, as you will see only a very millions of over indebted people specific type of person with specific from the stress of the harsh debt debts will be able to apply and we doubt that millions of consumers collections processes. will be able to get help though the Over time the process has found its process due to capacity constraints niche and works much better today and probable credit provider push than ever before but it has been a back. long journey of over a decade with many challenges along the way. It has picked up a few dents and dings and the new car smell has certainly faded.

We also catch up on economic and financial news, have an interview with a Debt Counsellor and see what happened at a big industry

conference in Gauteng. As always we have tips and advice as well. So, if you enjoy new things then be sure to find out more about debt intervention (just so that you know what people are talking about). It is hoped that this brand new process will help a large number of the poorest consumers in the country and particularly those without any income. If you are already getting help through debt review, then we urge you to consider just how wonderful it really is. Take it out, dust it off, give it some thought, polish it up and be excited that it is taking you ever closer and closer to being totally debt free.

FROM THE

E D I T O R

DEBT INTERVENTION

HOW TO HELP 100 000 PEOPLE

DEBT COUNSELLOR INTERVIEW

DCASA CONFERENCE

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 activities. Debtfree Magazine contains material supplied to us by advertisers which does not necessarily reflect the views and opinions of the Debtfree Magazine team. No person, organization or party can copy or re-produce the content on this site and/or magazine or any part of this publication without a written consent from the editorsâ&#x20AC;&#x2122; panel and the author of the content, as applicable. Debtfree Magazine, authors and contributors reserve their rights with regards to copyright of their work.

C O N T E N T S

DEBT INTERVENTION WHAT WE KNOW SO FAR...

DEBT INTERVENTION – WHAT WE KNOW SO FAR New amendments to the National Credit Act have been signed by the President and published in the Government Gazette. These amendments make provision for something called ‘Debt Intervention’. It is a process designed to help lower income consumers deal with their debt.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

DEBT INTERVENTION WHAT IS IT? Debt intervention is essentially debt review offered by the National Credit Regulator. It applies only to certain consumers based on how much they earn and the type of debt they have. The idea is to get consumers to change the way they currently spend their money at home and free up as much as possible to pay towards their debt each month. It seems that the goal will be to try to restructure consumers debts over 60 months where possible. Many people see it as a low cost alternative to administration orders and sequestration.

DEBT INTERVENTION – WHAT WE KNOW SO FAR

WHO CAN APPLY FOR DEBT INTERVENTION? The Banking Association of South Africa (BASA) told parliament that about 9.5 million people might qualify for the process but it is important to know that not everyone can qualify for debt intervention. To be eligible consumers must: • Have less than R50 000 debt • Have only unsecured debt (like loans and credit cards; not cars and houses) • Earn less than R7500 a month If 9.5 million people were to get hold of the NCR on the day that it goes live then the NCR could expect to receive 1.1 million calls an hour on the first day. If people are polite and take turns over the entire first month then the NCR could receive 49 479 calls an hour (or 824 calls a second).

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DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

WILL DEBT INTERVENTION GET RID OF YOUR DEBT? For those who qualify, it is exciting to think that you may no longer be trapped in debt and that your debts might be written off overnight. For the majority of consumers who apply and are accepted for this process it is totally unlikely that this will happen. The first goal of debt intervention is not to write off debt or even postpone repaying debt. It is to get people to pay something they can realistically afford towards their debt each month. Step two would be postponing payments for a while, especially where people have lost their job or have no work and only in extreme cases where consumers are destitute for years are debts expected to potentially be written off. This would only be after several years of being in the process. Writing off debt has been one of the hot debates around debt intervention and why the banks were so opposed to the new law. In fact, the banks may still go to court over the new law and might try to get it ruled as unconstitutional to write off their debt.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

OFFERED BY THE NATIONAL CREDIT REGULATOR The National Credit Regulator (NCR) has an office in Midrand in Gauteng and has been tasked with helping organize and run the debt intervention process for people country wide. It is very likely they will do so via a massive call centre rather than try establish smaller offices all over the country. When the regulations are published it is expected that we will find out when the NCR will have to start offering this service. They will need to hire a bunch of new staff. Train them and hand them certificates as Debt Counsellors. These Debt Counsellors will be known as debt intervention officers. The NCR will be offering the service for free to consumers but will require millions of rand to set up and start running the service. They hope to see a massive increase in their budget so that they can do so.

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DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

THE NCT The National Consumer Tribunal will be tasked with receiving applications from the NCR and turning them into court orders. It seems that the NCT will do this behind closed doors (not in court room hearings) and credit providers will be able to send objections and counter proposals etc in writing. These days, the NCT has been able to offer faster turnaround times on what are called consent matters (where everyone agrees to a debt review proposals) by using an online document submission process for debt review matters. This system could now be used for debt intervention as well. A NCT order has the same level of authority as a High Court order. Breaking such an order is an offence.

DEBT INTERVENTION – WHAT WE KNOW SO FAR

LISTED AT THE CREDIT BUREAUS Consumers under debt intervention, much like those under debt review, will be listed at all the credit bureaus during the process. Some people would call this “blacklisting” but nowadays there is no such thing as blacklisting any more. Rather there are just different listings that the bureaus keep that credit providers can consider when thinking about offering credit. This protects credit providers from accidentally offering reckless credit to deceptive consumers. Unlike debt review which is quickly removed it is possible that, in some cases, a consumer’s debt intervention status might linger for a while (12 months) but generally the idea is that once the person’s debts are paid up the debt intervention status will be removed as well.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

IF YOU HAVE AN INCOME If you cannot repay on your debt what you promised that you due to not having enough money to cover your basic needs and your debts then the NCR will first ask you to change your expenses around the house. They will ask you to cut back on spending on non essential things and free up at least a little money towards your debt each month. The official poverty line according to stats SA is R1227 per person. This is what Stats SA says people need to survive each month. If you have a household of 3 people then that would add up to R 3681. For 4 people that would be R4908. If fact, some expect that the banks will probably take payments of even R10/ month rather than nothing as this exposes them to the risk of write off. Accepting small payments and waiting for consumers to pay late or miss payments during the debt intervention so that they can leave the process may be one way that credit providers reduce the risk of write off.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

IF YOU HAVE NO INCOME If you are in a household with no income (remember grants for children are not considered income to be used for debt) and have no money to pay, then the NCR will make a suggestion to the National Consumer Tribunal that you pay nothing for a while (even up to a year). They will then monitor your situation (they anticipate doing this every 8 months) to see if you have begun to earn an income. If a couple of years goes by with you not earning any income or earning enough income then the NCR could ask the NCT to write off your debt. As a result you would then also be barred from gaining access to new credit for a little while afterwards.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

MISS PAYMENTS OR LIE AND YOU COULD GO TO JAIL Naturally with a process like this there was concern that consumers could simply lie about their income or household situation and try to get out of paying their debts. The solution to the law makers was to make it a criminal offence to do so. If you lie to the NCR about your income or expense etc you can end up getting fined or put in jail for 2 years. The National Consumer Tribunal has the same status as a High Court. If you decide to just break the NCT court order and miss payments for your debt intervention then it is an offence in terms of Section 160 of the National Credit Act. You could then be in line for a big fine in terms of NCA Section 161 or could even end up in jail for up to 10 years.

It is unlikely that the NCR will try to send people to jail but the credit providers who find out about such violations might be less friendly if they feel you are abusing the process and things might get scary very quickly. Once again it is however doubtful that credit providers will try to get you thrown in jail but in theory it could happen. They may rather just get out of the process and begin their usual collections process again.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

CAN CONSUMERS MANIPULATE THE DEBT INTERVENTION SYSTEM? While lying about your income and missing payments could get you thrown in jail it is in theory possible to manipulate the situation a little if you are sitting with less than R50 000 unsecured debt. Step 1 Consumers who currently do have work could go take on more debt to push their debts up close to the R50 000 limit. Step 2 Quit your job or just stop going to work and get fired. You now have the right amount of debt and no income.

If consumers are foolish enough to try manipulate the system in such a way they could potentially try make sure they never have income when the NCR check up on them and that they cannot repay their debts since they have no income. They can then try to have their debts written off. Of course, they would have to keep this up for many years while under the process and that would be very difficult. Ultimately such tricks may not work since we are not sure if (1) such a profile of consumer will get access to more credit these days. The banks are being very cautious about lending to lower income consumers who might fit this profile now and (2) the banks may take the write off part of the process to court and you could end up having to repay the debt anyway.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

CAN CREDIT PROVIDERS MANIPULATE THE SYSTEM? Debt intervention is simply debt review done by the NCR and we know the banks love debt review. So they will probably be happy to get payment through this process. It is possible though that credit providers may want to avoid the threat of possible debt write offs. Big banks like Capitec Bank have said that they have been reducing exposure to this profile of consumer for some time now. This means that they are lending to these types of consumers less and less. Capitec Bank said they only have a 5% exposure to such consumers. Smaller short term credit providers will not have this luxury since these consumers are basically their total client profile.

Since debt intervention only applies to unsecured debt then the banks may simply start securing smaller debts through sureties (for example). The banks may simply accept debt intervention payments of even R1 or less to ensure consumers can afford to repay something. They then can simply wait for a missed or delayed payment and then try to get the case thrown out since the consumer is not sticking to the court order.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

WILL CONSUMERS SAVE THROUGH DEBT INTERVENTION? Consumers who go for Debt Intervention will not have to pay any fees to a Debt Counsellor for their debt review. These fees will be covered by tax payers in funding to the NCR. This then makes it seem cheaper than traditional debt review, at first glance. However, it is interesting to note that debt intervention, much like most debt review matters these days, will potentially be paid over 60 months. Credit providers like to make adjustments to interest rates and drop fees during a debt review to try ensure that debts are paid off within what they see as a reasonable time period (eg. 60 months).

If a consumer were to enter debt intervention with a total of R50 000 debt what would they pay each month? Once the calculations are done it is likely that the consumer will pay around R833 a month over 60 months (possibly less if they have less to pay). If the same consumer were to enter debt review with a total of R50 000 debt what would they pay? Once the calculations are done and if the consumer has funds to pay they would likely pay around R833 per month (which would include fees). So, the consumer would still pay the same figure each month in both processes. One would include fees to a Debt Counsellor which the credit providers would forgo and the other would not have fees to the NCR included. As far as the consumer is concerned the payment would be the same and take the same time period.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

WHY DEBT INTERVENTION AND NOT DEBT REVIEW? There were many people who, during the planning phase of the recent amendments to the National Credit Act, said that Debt Counsellors are not interested in helping consumers who might fit this lower payment profile. Is this true? The Debt Counsellors Association of South Africa (DCASA) say that based on their research many Debt Counselling firms have over 17% clients who are the type of consumer who would now qualify for debt intervention. So, it seems claims that Debt Counsellors never wanted to help these consumers are highly inaccurate.

Rather, it seems that the credit providersâ&#x20AC;&#x2122; past reluctance to make significant drastic efforts to drop fees and rates and really extend repayment terms in a dramatic way forced the hand of the law makers to put a government representative in place to force them to â&#x20AC;&#x153;play ballâ&#x20AC;?. Side stepping issues like prescription of debt, Induplum and reckless credit have also not helped. Efforts have been made by Debt Counsellors to get credit providers to willingly and without court compulsion extend repayment terms (in some countries debts are happily restructured over 20 years) but some credit providers have fought to try keep repayment terms short to 60 months or less. This means consumers might be asked to pay close to the very edge of what they can realistically afford each month. Many courts also focus on shorter repayment terms and have delayed the debt review court processes in the past. Though this has improved a lot in recent years credit providers have earned a less than cooperative reputation unfortunately. Particularly is this the case in regard to the contentious issue of reckless lending. The idea of a service without fees (even during a time when government funding is in serious trouble) also is pleasing to the public and political party members. The idea of totally side stepping the courts entirely and heading to the sympathetic National Consumer Tribunal for all matters is also very appealing to many.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

IS DEBT INTERVENTION BETTER THAN DEBT REVIEW? You may wonder if debt intervention is better than debt review since it is new and it required changes to be made to the National Credit Act to make it happen? Basically, debt intervention is debt review. It is the same thing but is targeted at a specific group of clients. It is also going to be done by the Regulator and not by professional Debt Counsellors. All this really means is that the NCR will potentially be removing about 17% of potential new clients from Debt Counsellors if they manage to make capacity to assist clients in this profile. Though the processes are almost identical there are one or two significant differences.

The NCR does not have to run a profitable sustainable business to help these consumers. They can rely on government funding. This means that when consumers fail to pay once they start the process this will not negatively affect their ability to remain in business. A second difference, which is scary to credit providers, is that the credit providers who are dealing with the NCR about these consumers also get regulated, investigated and monitored by the NCR. This is the same organisation which is able to try take them to the NCT and have their license removed at any time. This is going to make it very tricky for these credit providers to continually oppose matters and not expect some form of pushback from the Regulator. Many people wonder if the NCR are going to struggle to stay impartial and if the massive conflict of interest is not going to be a big problem and collapse the system.

DEBT INTERVENTION â&#x20AC;&#x201C; WHAT WE KNOW SO FAR

PEOPLE NEED HELP Millions of South Africans are taking increasing strain due to hard economic times and poor financial training. These people need all the help they can get to deal with the pressure that comes from having outstanding debt they are unable to pay according to their contract obligations. Any process which helps these consumers is going to help. It is hoped that debt intervention can be such a process. In particular, with the growing levels of unemployment across the country debt intervention may help people avoid having a long list of judgments against their name and growing debt balances running up to Induplum. Debt Counsellors are excited to find a way to help what are known as Ninjas (No Income, No Job consumers). Though this could admittedly be done via debt review the courts and industry have not been good at implementing it. So, now the NCR can step in and try do it via the NCT. Though it remains to be seen if the banks take the aspect of debt write off to the Constitutional Court (and how that could make or break foreign investment in SA) any process that can help consumers pay off some or all of their debts is going to be a good thing.

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DEBT REVIEW SCHOOL If you want to check if a credit provider or Debt Counsellor is really registered with the National Credit Regulator you can visit the NCR website: www.ncr.org.za

HOW TO HELP 100 000 PEOPLE THROUGH DEBT INTERVENTION

The NCR face a mammoth task in trying to help just some of the 9.5million people who may qualify for debt intervention. Rather than look at that mind boggling number let’s do some math and discuss how to perhaps help just 100 000 people. The Debt Counsellors Association of South Africa (DCASA) says it takes over 50 hours to help a consumer through debt review (and much more if reckless credit is involved). If we assume the NCR are much better at debt review than Debt Counsellors and get better cooperation and have better computer systems etc and if we ignore the NCR having to review each case every 8 months. To help 100 000 people it would take a total of 5 000 000 hours! If one person at the NCR helped these people for 8 work hours a day it would take that one person 625 000 days. That’s a long time so let’s divide that into something more realistic like a work year. There are normally somewhere around 260 work days in a year (with no leave or public holidays). So, it would take one person 2403 years of work to help 100 000 people. Hopefully the NCR will hire a very large amount of people to help consumers. They will have to set up a large smooth operating call centre of trained people. If the NCR are able to hire 2403 people then they could potentially try help 100 000 people in a year. Given the increased focus that is being placed on reckless credit investigations and the need to do so on every account under review the workload for each matter may end up being a lot more than expected and previously calculated by DCASA.

KIM ARMFIELD

AND ASSOCIATES

When debt review clients don’t pay they put your entire practice at risk! We make sure you get paid for the work you’ve already done! Tel: 021 949 1758 | 084 702 3760 info@legalwc.co.za | w w w.capeat torney.co.za

INDUSTRY INTERVIEW

Tashreeq Syster (Debt Counsellor) Blue Star Consultants

How long have you been a DC? For two years now. What did you do before becoming a DC? I have a background in client services. Why did you become a DC? With a background in client services, I have always been drawn to helping people. I was deeply concerned when I learned of the alarming rate of over-indebtedness in South Africa. I felt that I had the right skills and background to help people deal with the financial and emotional strain they were facing and to make a positive difference in their lives. What area do you practice in? I am situated in Cape Town, but help clients all over the country. Do you have a small/med/large DC company? I would say that the company is medium sized.

What makes your business a success? I have a team of unbelievable people who contribute greatly to our success each and every day. While I can mention many aspects, I believe that our success can be mainly attributed to two things: That personal touch â&#x20AC;&#x201C; We treat each client as if they are our only one; and our work ethic - We fight tirelessly to provide the best level of service and outcome for our clients. Where do you find new business? Through various online and direct marketing channels. I also obtain many clients through referrals from my existing client base. Who are your favourite and most challenging credit providers at the moment? Favourite: Lewis Stores and Consumer Friend. Most challenging: Wesbank and Absa What is the biggest challenge facing Debt Counsellors at the moment?

A small number of unethical Debt Counsellors are sadly giving the industry a bad name. Also, some credit providers are very difficult to work with and do not act in the best interest of the consumer. What is the biggest challenge facing your consumers at the moment? A lack of education about Debt Counselling and common misconceptions of the process. There is also a general lack of financial literacy within South Africa. What advice do you have for consumers with debt stress? Struggling to repay your debts and maintain an acceptable standard of living for you and your family can be a very overwhelming and distressing experience. I fully understand how difficult it can be to take that first step and face the issue. I would strongly encourage anyone dealing with a debt problem to seek help from a registered, professional Debt Counsellor.

A good Debt Counsellor will analyse your individual circumstances; assess and explain all options which are available to you in a clear manner; and provide you with a tailored solution which meets your needs. At Blue Star Consultants we always offer an obligation-free assessment and our services are strictly confidential. What advice do you have for consumers already under debt review? Your primary goal should be to maintain your debt review arrangement and ensure that you honour the agreed upon (reduced) monthly repayments. Keep your Debt Counsellor up to date with your finances and inform him/her if any of your circumstances change. A good Debt Counsellor is always available to his/her clients, even if just for a quick catch up or chat.

Tel: 021 205 1663 WhatsApp: 079 868 3323 info@bluestarconsultants.co.za www.bluestarconsultants.co.za

DEBT REVIEW SCHOOL Did You Know? If you are soon going to have to take maternity leave did you know you can ask a court to delay or postpone debt repayments (NCA Section 86 (7)(b)).

WHAT DO THE NCA AMENDMENTS MEAN FOR CREDIT PROVIDERS? Other than debt intervention, what will recent changes to the National Credit Act mean for credit providers? Interest Rates Since the courts can now just go ahead and adjust interest rates for debt review matters where credit providers do not agree with the proposals of Debt Counsellors it will now be beneficial for credit providers to try reach a firm agreement on interest rates before matters go to court. Alternatively, they may have to instruct their legal representation on trying to motivate the courts to grant them the rates they would prefer to have. Reckless Credit The Act now requires credit providers to provide the needed documentation to do reckless credit evaluations (incl. to the NCR who are busy with a debt intervention case, for example) within 7 days. This is going to be very difficult for credit providers (particularly larger ones who have millions of documents filed offsite) and is going to present a real challenge. Improved processes and systems will have to be put in place to comply.

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WHAT DO THE NCA AMENDMENTS MEAN FOR DEBT COUNSELLORS? Recent NCA amendments are going to have an impact on Debt Counsellors. Interest Rates Many courts have hesitated to adjust credit provider interest rates when hearing debt review cases. They have hesitated to make these changes even where credit providers have agreed to adjust rates. Where credit providers and Debt Counsellors have not been able to see eye to eye the courts have not been willing to make changes to interest rates unilaterally. This is now a thing of the past. The Act has been updated to allow courts to adjust interest rates on debt review matters. Reckless Credit In the past, consumers or courts had to specifically ask Debt Counsellors to investigate reckless credit. This was seldom done (since credit providers fight these matters tooth and nail and were hesitant to provide the needed documentation due to the high costs and possible lack of documentation involved). Now the NCA has been amended to say that Debt Counsellors must automatically investigate reckless credit in all cases. The amended Act now also makes it a criminal offence not to report a matter which could possibly be reckless to the NCR (and to a court hearing a debt review matter). The consequences of failing to do so are serious.

What if...

YOUR CLIENT’S VEHICLE IS STOLEN OR WRITTEN OFF?

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MA XIMISING INSUR ANCE 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.

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Die Republiek van

SKYT AFRICA Hi Almal, Daar is al in die verlede tot vervelens toe gepraat oor die belangrikheid van n maandelikse begroting en tog is daar mense wat daaglikse kla dat hul begroting nie klop nie. Alhoewel daar eksterne faktore kan wees, soos n onverwagte uitgawe wat die begroting negatief kan impakteer, gebeur sulke dinge nie elke maand nie. Indien die ongeluk jou maandeliks ry moet jy n ernstige gesprek met jou geluksgodin voer want sy is besig om op die job te slaap! Elke begroting moet n bedrag vir die onvoorsiene insluit maar daar behoort nie maandeliks n voorsienigheid plaas te vind nie, indien jy elke maand hier spaarpoging opgebruik en nog meer is daar fout met die begroting. Die oplossing kan n lewenstyl oudit wees. Dit klink na n bek vol maar is eintlik heel eenvoudig. Die begroting is wat jy beplan of beoog jou uitgawes gaan wees, n lewenstyl oudit is n rekonsiliasie van jou werklike

uitgawes, soos die begrip dit stel jy doen n finansiële nabetragting van wat, hoeveel en waar jy die afgelope maand geld spandeer het. Almal se beursies is tot oorlopens vol van strokies vir elke transaksie aangegaan met meestal n beskrywing van die aankope. Nou hoe gemaak? Na elke aankoop detailleer dit terug na jou begroting toe, sommer dadelik in die middag as jy by die huis kom. Geld by die kitsbank getrek? Sodra jy tuis is skryf op die strokie waarvoor die fondse aangewend was. As die kitsbank se skerm aandui of jy n strokie verlang neem een, jy gaan nie die wêreld se bome uitwis in die soeke na n oplossing vir jou probleem nie. Wees uiters noukeurig wanneer jy die inligting neer pen en neem kennis waarop geld uitgegee is. Indien jy x bedrag op melk begroot het sal die rekonsiliasie op enige gegewe stadium in die maand vir jou n aanduiding gee van hoeveel op melk spandeer is en hoeveel bly nog oor. Dit is gewoonlik die klein jakkalsies wat die wingerd opvreet, daardie duur sjokolades wat so strategies by die betaalpunt geplaas is of die biltong wat so verdomp lekker ruik in die slaghuis of die “special” van wat ookal wat jou oog vang. Ek hoop dit help. Groete, Christo Christo Hattingh Kyk gerus my LinkedIn profile: https://www.linkedin.com/in/christo-hattingh-351a52130/ * Seriously please do let us know if you found this article to be funny/offensive/amusing/interesting feedback@debtfreedigi.co.za

Situated in the pleasant Mount Edgecombe area in Durban north, just a few kilometers drive from the King Shaka Airport, the Gumtree Lodge is an affordable, centrally located home away from home. It manages to combine convenience with a central location and all at reasonable rates. The decent sized rooms are air-conditioned which comes in handy almost all year round as Durban can be warm even during the winter months. Alternatively, guests can head outside to the generous gardens and the large pool where you can soak up some rays on the sun beds and enjoy the Durban sunshine all year round.

The lodge is just a few minutes drive from the ever popular Gateway and Cornubia shopping malls. These popular malls have every type of shopping you might possibly want and entertainment options for both day and night. If you are less of avid shopper and feeling a little bit more sporty then you could hit the local golf greens which are situated almost right next door. Otherwise it is just a few minutes drive to the local beaches where you can watch dolphins and whales swim by, build sandcastles and go for a swim in the ocean. If you need a little inspiration on what to do in the area during your stay then you canjust head down to reception to get travel and tour advice from the friendly management team. If however you are visiting Durban on a

business trip then a nice feature at the Gumtree Lodge is the convenient in-house business centre. This comes in handy if you suddenly find that you need to print, scan or fax something urgently. If you need to hold any meetings during your stay the Lodge has also got you covered. They have a 10 seater boardroom for business meetings or strategy sessions â&#x20AC;&#x201C; just chat to the folk at reception. The owners say that the large grounds can even be used for large functions or weddings for up to 100 guests. They have the option of erecting a marquee tent on the property so that guests can be sure of staying warm and dry no matter the weather. The Gumtree Lodge is one of those spots where once you find it you are bound to return. It is affordable, comfortable and has a nice range of amenities with friendly staff. So, be sure to check out the Gumtree Lodge when next you visit Durban. https://www.gumtree-lodge.co.za/

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Congratulations to all those recognised in this year’s Debt Review Awards.

Debt Counsellors Collective Check out our Facebook page. We encourage all registered DC’s who are not affiliated with an association to join so that DC’s get the opportunity to influence decisions taken by the NCR.

Join our discussion about Debt Intervention on our members only Facebook page.

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Congratulations to all the 2019 Debt Review Awards winners

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DCASA Branch Meeting Dates: KZN (Westeville Country Club) 26 October 2019 Western Cape (Parow Golf Club) 23 October 2019 Thank you to all who were able to attend the Annual Conference.

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

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Large Debt Counselling firm seeks the services of a Senior Debt Consultant / Debt Counsellor to join team of experts. Qualifications & Requirements: • Must have at least 2 years debt counselling / review experience • Qualified certificate will be an advantage • Be able to work under pressure • Be a team player • Computer literate Competitive basic salary and very good commission. Earn at least R20 000 to R40 000 if you are a hard worker. Please send your CV to wecare@debtcare.co.za for an interview.

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DCASA ANNUAL CONFERENCE 2019

The Debt Counsellors Association of South Africa held their annual members conference in Gauteng during August 2019. The event was well supported and featured a number of interesting speakers who discussed the economy, recent financial scandals and matters pertaining to the association and industry.

Mike Schussler Economist

way people will be validating debit orders (Naedo & Aedo no more). Since a big part of the plan is to use peoples’ mobile phones to contact them and ask them to verify a new debit order (or once of confirm an older repeat payment, like your debt review payment) there may be challenges.

Mike discussed how indicators are that the US is headed for an economic recession and what that means for all other economies and currencies. The “Average” world citizen owes $24 000 (over R360 000), working people owe $60 000 (nearly R1 million). Test runs by the banks show that many consumers did not cooperate. Household debt in SA has been Since it has to be done within 24 gradually declining but recently hours this posses a looming problem. began climbing again. There Many banks will have lots of other are 9.32 million people who are channels for consumers to use like credit active than are in the formal email, websites, atms and using employment sector. 5 million of these banking apps. people have probably got credit they should never have been allowed to Tim Van der Grijp get. National Credit Regulator Eskom debt is 10% of GDP and Tim spoke about several NCR turnover is only 5% with no profits. circulars, plans for webinars, court challenges and an upcoming industry Chris Van Der Straaten wide survey (the NCR would like to Hyphen PDA see over 1000 responses). Currently, it is estimated that there are around If you don’t know what DebiCheck is 750 – 900 active Debt Counsellors. then you need to catch up quickly as it is coming and going to influence He also provided updates on what the way you pay people and they pay is happening at CIF (chaired by the you. In particular it has to do with the NCR). The subcommittee on the

withdrawal guidelines has been put on hold to await a court case outcome on the topic. He also laid out some of the many, many new projects that the NCR are embarking on. This will include an update of the terms and conditions of registration of Debt Counsellors with the NCR (since 5 years have passed since the past review).

such as how 24.10% of credit active consumers have accounts that are over 3 months in arrears. He also congratulated recent winners in the annual Debt Review Awards.

Russell Dickerson DCASA President

Stats for people who have entered debt review show that the so called â&#x20AC;&#x2DC;normsâ&#x20AC;&#x2122; given for consumers household expenses are short by at least 272% and could even be off by 292%. In 20% of cases he researched, consumers were granted credit which was more than their actual take home pay.

Paul Slot DCASA Representative to CIF

Paul discussed in detail the minimum spending norms and how 10 million Rob Rose credit users have got into arrears. He Editor at Financial Mail discussed the weaknesses of the way credit providers assess if consumers Rob spoke about the scandal can actually repay debts. This ties in surrounding the financial crimes of closely with reckless credit granting. Steinhoff. He expressed amazement that people are not being put into jail The minimum spending norms are left, right and centre over the matter. well below reality especially for lower Some of the shocking stories shared income consumers. He predicts a highlighted how greedy people can significant debt bubble to burst in and will do anything for more money. the next year.

Russell thanked each member of the DCASA NEC and the two hard working members of DCASA staff (Vanessa & Christina) for their work. He then ran through some interesting industry related facts and figures

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