L IA N EC IO SP DIT E
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Issue 01 of 2024
THINGS DEBT REVIEW CAN DO FOR YOU
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
Call Saishen Krishnan 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 Well, after a nice break we have started the year strong. The team here at Debtfree have thrown themselves into all the projects we have planned for this year. It’s great to make plans and then start to work on them straight away. This year, we intend to bring you more content than ever before, across more platforms than ever before, and more regularly than ever before. We are excited about that. We hope that it will be even more helpful to you than ever before, as you navigate the months ahead. Let’s be honest, the months ahead may present challenges. We may see volatility in the US Stock Markets which could have a knock-on effect elsewhere. We may see further conflicts in the Middle East, Europe or Asia. We certainly will see more political manoeuvring locally, but you should not let that stress you out and cause you to doubt your plans. After all, if you can follow through on your plans during the tough times, think how you will take off and succeed, when things get easier in the future. So, if you are holding back because of unknown future obstacles, don’t!
If you have been trying to deal with runaway debt on your own, and have made little progress, then we urge you, speak to a professional and get help, do it and do it soon. Debt tends to get worse the longer you leave it. Every step in the right direction is a mini victory. Surely, it is better to be making progress in the general direction of your goal than doing nothing about it at all. Even if you take 99 steps towards your goal and don’t get to take that final step this year… well, you will have made reaching your goal so much easier in the future. Focus on what you can control, and keep taking steps in a positive direction. Who knows, if you take enough of these steps, you may turn around later in the year and see that you have made more progress than you could have imagined. Progress can sneak up on you. If you need to make 60 payments to get out of debt, then make the first 12 this year, that moves you considerably closer. If you need to make 48 payments, make the next 12. Stick to the plan, and keep making progress. Only 24 payments to go? Amazing!!! Make the next 12 payments and then after a few more months you will look back and before you know it, you will have reached your destination to become totally debt free.
FROM THE DESK DEBT-FREE LOVE: TALKING DEBT & RELATIONSHIPS THIS VALENTINE’S DAY NDA CEO explores the link between love and finances, encouraging open communication about money and debt, and providing practical DO’S and DON’TS for financial harmony in relationships this Valentine’s Day. As Valentine’s Day draws near, love is in the air, and couples are making plans to celebrate their relationships. However, amidst the roses and chocolates, the topic of debt in relationships is often left undiscussed. This is
despite the fact that financial problems contribute to 20-40% of all divorces in the world, with an alarming 4 out of every 10 divorced couples citing financial strains for their demise. “Debt is not only a financial challenge but a significant threat to the very fabric of relationships. The pressure and conflicts that arise from managing debt can unveil deeper issues such as secrecy about spending, disagreements on financial management, creating a ripple effect that extends beyond just the numbers on a statement.“ I encourage couples to share personal financial experiences regularly and pose direct questions about debt, saying this can help couples understand the severity of the situation and how it might affect their own finances is crucial. “When it comes to discussing finances, the key is open communication without judgment. It’s about finding the courage to be vulnerable and sharing our thoughts on spending and saving. It’s crucial to ask ourselves if our partner’s financial habits are truly problematic or if they merely differ from our own.” While debt can be a significant burden, especially as millennials grapple with higher levels of debt, it doesn’t necessarily have to be a relationship deal-breaker. “In many cases, debt might not significantly impact a couple until they consider moving in together. Setting ground rules around debts and bills, and establishing open communication channels, can help mitigate potential issues.”
DO’s and DON’Ts for couples to foster financial harmony:
Do’s: Set Financial Goals: Shared financial aspirations create a foundation of trust and enhance overall financial stability in a relationship. Financial Stability: A stable income is a vital component of a healthy relationship, reflecting responsibility and a strong work ethic. Financial stability is attainable through mindful spending, effective saving, and responsible investment practices. Follow a Set Budget: Establishing and sticking to a budget is a fundamental practice in a relationship. It ensures that expenses are in harmony with income, preventing unnecessary financial strain and promoting financial security for both partners. Financial Independence: Financial independence contributes to a sense of responsibility and enhances a couple’s ability to achieve shared financial goals. Both partners are encouraged to be financially self-sufficient to foster a healthy dynamic in the relationship.
Don’ts: Lack of Savings: Regular savings are essential for maintaining financial stability and achieving shared goals. Neglecting this aspect can lead to financial stress and strain the overall well-being of the relationship. Personal Debt: Discussing and managing personal debt is crucial before a relationship becomes serious. Open communication and a collaborative approach are necessary to navigate and resolve debtrelated issues effectively. Bad Spending Habits: Irresponsible spending can strain a relationship. Maintaining a budget, avoiding impulsive purchases, and practicing financial restraint are essential practices to promote stability and prevent conflicts arising from incompatible spending habits. “Financial compatibility goes beyond income and savings; it’s about having a shared approach to managing money. This includes committing to saving, paying off debt, and investing for the future.“
Charnel Collins National Debt Advisors CEO
DEBT REVIEW
CONFIRMATORY AFFIDAVITS A confirmatory affidavit is a legal way to say you know about, and agree with the plan that has been given to the courts for your debt review. Attorney Rynhardt De Lange of DL Attorneys says: “when you have your confirmatory affidavit commissioned, it is important that you make sure each page is initialled. Sign the last page in the presence of the commissioner of oaths.” Tip: The commissioner will stamp the document to confirm that it has been legally verified. Make sure their full details are recorded on the affidavit.
CONTENTS 7 THINGS DEBT REVIEW CAN DO FOR YOU WHAT IS A CONFIRMATORY AFFIDAVIT & WHY IS IT IMPORTANT?
MAKE THE MOST OUT OF YOUR LEAVE
NEWS DISCLAIMER Debtfree Magazine considers its sources reliable and verifies as much information as possible. However, reporting inaccuracies can occur, consequently readers using this information do so at their own risk. Debtfree Magazine makes content available with the understanding that the publisher is not rendering legal services or financial advice. Although persons and companies mentioned herein are believed to be reputable, neither Debtfree Magazine nor any of its employees, sales executives or contributors accept any responsibility whatsoever for their
activities. Debtfree Magazine contains material supplied to us by advertisers which does not necessarily reflect the views and opinions of the Debtfree Magazine team. No person, organization or party can copy or re-produce the content on this site and/or magazine or any part of this publication without a written consent from the editors’ panel and the author of the content, as applicable. Debtfree Magazine, authors and contributors reserve their rights with regards to copyright of their work.
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THINGS DEBT REVIEW CAN DO FOR YOU
7 THINGS DEBT REVIEW CAN DO FOR YOU
DEBT REVIEW CAN
HELP YOU Dealing with debt can be super stressful. It can lead to sleepless nights, chest pains and constant pressure from collections agents. For many, the solution has been to enter debt review. This is because it is a legal way to get credit providers to play nice, and give you a realistic amount of time to pay what you owe. Here are 7 things debt review can do for you.
7 THINGS DEBT REVIEW CAN DO FOR YOU
A PLAN CAN
SET YOU FREE When you are overwhelmed by debt and caught in the debt collections process you stress day and night. You know that you need to do something about the situation, but your efforts just don’t seem to work. Many people turn to more debt, thinking that they can somehow dig a deeper hole and it will help, but that’s a short term solution. One that simply makes matters worse. When the end of the month is coming and you know all your lines of credit are tapped out, family and friends will no longer lend you more money and no credit provider wants to touch you, it can be crushing. You feel trapped with no way out. This is where entering debt review can provide instant relief. Just the knowledge that you finally have found a way forward, and one where you get help from a professional, is a massive weight off your shoulders.
7 THINGS DEBT REVIEW CAN DO FOR YOU
NO MORE COLLECTIONS
CALLS
When you owe money to credit providers and can’t pay what they want, they can really tighten the screws. SMS’, calls, emails, letters, you name it, they will do it. It can be tiring to avoid phone calls, be scared to open letters or even hide your car at a neighbours’ house just in case the repo man comes around. The reason why the mental pressure is so intense, is because it is designed to be that way. Your credit providers have had decades (even centuries) getting it right, they know how to apply the pressure.
The problems is, when you owe multiple people, and they all want their money at the same time, it is mathematically impossible to make them all happy. When you enter debt review, the Debt Counsellor will send notices to all your credit providers, telling them to stop freaking out and pestering you. You are now making a plan through debt review to pay what you owe. This results in an immediate decrease in pressure and an eventual stop in the collections process. It means, no more collections calls, no more harassing sms’ and emails. Just entering the process can see a 95% reduction in these calls in the first week or two. It is like someone turned off a noisy generator that had been on in the same room with you, and suddenly you have peace for the first time in ages. It’s amazing. And for those last few collections calls that could still come through from time to time, you have the beautiful catch phrase: “Talk to my Debt Counsellor”.
7 THINGS DEBT REVIEW CAN DO FOR YOU
A REAL
BUDGET We all know we should budget, but it is hard. Especially when you simply do not have enough to pay your debt and cover your living costs. This is why we get stuck relying on credit, and spiralling into more and more debt. As a result, making a budget was probably something you hated to do. Once you enter debt review, your Debt Counsellor will go through your particular situation and try find a balance between what your credit providers want, and what your family really needs. The idea is to make sure you can realistically cover the necessities (not luxuries of course). This would include all the things that you probably had to cut out of budgets in the past to try make ends meet. That would be things like; saving for annual expenses, paying for things like car and TV licenses and having needed insurance. Just knowing that a professional is going to give you a realistic figure that can work, is massive. It may mean a few changes to your lifestyle but having professional, experienced help is a huge relief.
7 THINGS DEBT REVIEW CAN DO FOR YOU
IT FORCES YOU TO MAKE
NEEDED CHANGES
When you are in a debt crisis it can be paralysing. You might know that changes are needed but you probably don’t even have the budget or the leeway to put some of those changes in place. Instead, you end up just cutting things out. Never doing more, always doing less. Less food, less insurance, less of everything. That is a terrible way to live. It leaves you trapped in a shrinking cage with no room to make improvements. No mental bandwidth to do new things, or even to try new things.
You end up falling into bed for another sleepless night, exhausted at the end of every day. Too tired to do what you know in your heart is needed. Entering debt review can be a mental (and emotional) fresh start. It can enable you to have more energy, more mental bandwidth, and more financial freedom to start to make the needed changes you have not been able to. That may be moving homes, starting a side hustle for extra cash, or maybe just getting back into doing a little exercise each day. It provides a fresh chance to do more for a change, not less. To breath, to think, to plan and have hope.
7 THINGS DEBT REVIEW CAN DO FOR YOU
SAVE
SOMETHING The idea of saving anything when you are deep in debt is a foreign concept. You simply cannot afford to save anything. Which is why, when annual expenses like a car service or school uniforms rolls around, you have to reach once more for the credit card. And that’s not to mention when an emergency comes along. An unplanned medical emergency or a cracked windscreen or burst tyre. And they just seem to happen more and more, it can be crushing. When you enter debt review, your Debt Counsellor helps you to make a budget. Part of that budget will be setting aside some funds each month towards expected annual expenses, as well as the unexpected. Soon you will have a small amount set aside to use when those expenses come around. It is amazing how relieving it can be to see that small savings amount grow to match your coming expenses.
7 THINGS DEBT REVIEW CAN DO FOR YOU
PEACE OF
MIND We all want to provide for our family. That is often why we end up in debt in the first place. To give them a place to stay, to provide transport to school and put food on the table. When credit dries up, and the collections agents start calling, all that is at risk. We could lose our homes, our cars, our ability to care for our family. This is why entering debt review can totally turn things around for our family’s future. It not only helps protect our assets, but you get help with budgeting, you get advice on saving, you have time and space to make needed changes. Knowing that your debt repayments are now going to be what you can realistically handle each month (normally much lower instalments over a longer time period), means that you have enough money to cover what your family needs: School clothes, school books, doctor’s visits, insurance, even just enough good food and a safe place to stay. This provides real peace of mind.
7 THINGS DEBT REVIEW CAN DO FOR YOU
PAYING OFF YOUR
DEBT
Before entering debt review, living in debt was probably your reality. You probably never thought that there might be any other option. When you do not have enough money and still have to pay creditors, the truth is that you might never actually get out of debt. Each month you might pay some of your debt but then almost immediately make new debt. As a result, you were trapped as a debt slave with no hope of ever breaking the cycle. Debt review can change all that. With professional advice and the help of the law and courts, you can have a plan that will take you from deep in debt to being debt free. Imagine that: having no debt at all!
Almost no one knows what that feels like. Most people will be in debt for the rest of their lives, but you have a chance to become totally debt free. To owe no one anything at all. And every month while you are in the process, people around you (even family and friends) will keep digging themselves deeper and deeper into trouble while you steadily make your way out. This is truly an amazing benefit of debt review. Sure, it will take time and dedication but it is the light at the end of the tunnel, the pot of gold at the end of the rainbow, it is the chance of a lifetime that will turn your financial future around like nothing else ever could.
YOU CAN DO IT! Debt review is not easy but it is also not impossible. Hundreds of thousands of people have used the process to get out of debt and you can to. If you would like to hear from some of the people who have successfully completed the process then you can check out this podcast which is all about debt review success:
www.debtreviewwithdummies.co.za
There are interviews with all sorts of people like: • A Hard Working Single Mom • A High Profile Businessman • A Radio DJ • Someone who fell for the “get out of debt review scams” • Someone who took a really long time in debt review • Someone who started a new job and things didn’t work out Their success stories show that anyone can complete debt review if they just stick with the process and work closely with their Debt Counsellor. Why not give the podcast a listen and see how they did it?
WHAT IS A CONFIRMATORY
AFFIDAVIT & WHY IS IT IMPORTANT?
CONFIRMATORY AFFIDAVIT
SIGN ON THE
DOTTED LINE When you enter debt review you will eventually be asked to sign a confirmatory affidavit and have it commissioned. If you don’t get this document commissioned and sent back to your attorneys your entire debt review will fall apart. But what is this affidavit and why is it so important?
CONFIRMATORY AFFIDAVIT
WHAT
IS IT? A confirmatory affidavit is a legal document that confirms the authenticity of a statement or fact made by an individual. They are used in many legal matters. In a debt review matter, the confirmatory affidavit says (or confirms) that you: 1. Did ask the Debt Counsellor for help through debt review (you want to be in debt review), and 2. Agree with the debt restructuring proposal (the repayment plan) that has been created for you, and 3. Agree with the things the Debt Counsellor has said about your matter (like info about your budget and why you are having challenges) and the plan. This document will be added to the court documents that are submitted on your behalf.
CONFIRMATORY AFFIDAVIT
WHY IS IT
IMPORTANT? If this document is not there on the day the matter is heard, the Magistrate or Judge will not want to grant your court order. The courts do not want to accidentally put someone under debt review who does not actually want to sort out their debts. They also want to make things as easy for people as possible. This is why they ask for this form instead of asking you to travel to court and sit there for hours waiting to tell them in person. If the court matter is heard and the affidavit is missing, the magistrate can throw the matter out of court and this can cause a lot of trouble. Some of your credit providers might think you do not actually want to go through with the debt review, and will start new legal action against you to collect their money. This is why you need to get the affidavit: 1. signed and 2. commissioned and returned to your attorneys ASAP!
DEBT REVIEW CONFIRMATORY AFFIDAVITS A confirmatory affidavit is a legal way to say you know about and agree with the plan that has been given to the courts for your debt review. Attorney Justin van der Linde of VDL Attorneys says: “The easiest and quickest way to get the document commissioned is to approach an attorney, some duly appointed traditional healers, a Sheriff or certain members of the SAPS at the local police station”. TIP: Don’t print the confirmatory document on back to back sides of the same page. The courts don’t like that. Rather, print each page of the document on its own piece of paper. You can save the forests later.
BREAKING NEWS
REPO RATE HOLDS STEADY South African consumers sighed in relief (and disappointment) in January 2024 as the SA Reserve Bank’s Monetary Policy Committee unanimously decided to hold interest rates steady. This leaves the current Repo Rate at a 14 year high. While this is not exactly good news and offers no relief to those with lots of credit, it is not an increase, which might tip many people over the edge, resulting in them losing their assets. The MPC were quick to point out that although inflation has normalised within their target range, it remains on the upper side of their target and they feel that waiting longer may help. Another factor was the recent snafu with the ports and rail system across SA. It is possible that reduced loadshedding and lower petrol prices over the year end were contributing factors, and as these look to ramp up in the next few months, the MPC will keep an eye on things to see if they can finally start to cut rates a little. If you think the repo rate is high, check out what is happening in Nigeria HERE. Their Central Bank is about to push their repo rate to a whopping 22.75%.
RAND REACTS TO REPO HOLD After spiking over R19/Dollar recently the Rand has now settled down back below this important threshold. The drop followed the recent SARB Monetary Policy Committee announcement about not changing the Repo Rate. With the Repo Rate holding steady for the near future, this has brought some clarity to the market and the Rand reacted accordingly. Other factors like countries harbour and freight issues, the drastic drop in coal exports via Richards Bay, the ongoing high levels of organised crime and upcoming election chaos will likely have some negative effects on the Rands value in the months ahead. This in turn may influence fuel costs and push up transportation costs. At the same time, the US has their fair share of ongoing issues and this is just as big a factor in the equation. 1 year ago the Rand was at R17/Dollar
THE AU HATE INTERNATIONAL RATINGS AGENCIES & PLAN TO MAKE THEIR OWN International Ratings Agencies like Moody’s, S&P and Fitch offer insights into the credit worthiness of various institutions, companies and even sovereign debt and bonds. For example, in August last year, Fitch Ratings downgraded the ratings of the US stating there has been a steady deterioration in standards of governance in the USA. Since these ratings are often used by investors to inform their decisions, negative ratings or downgrades can cause nervous investors to look elsewhere. The most famous ratings agencies are: Moody’s Service, S&P Global Ratings and Fitch Ratings. They use slightly different scales, but all 3 use an alphabetical scale where AAA is the highest rating and C (or D) are the lowest. They often use a + or – to indicate sub-levels and publicise a positive or negative outlook pointing to future increases or lowering of ratings. Many African states have been hit by lowered ratings recently. In the first 6 months of last year, 11 African countries got hit with 13 negative ratings decisions. The causes are many, and the ratings agencies hold fast to their ratings and how they came to them. Now the African Union say they want to create a better, more understanding, more insightful credit rating agency to provide better ratings that take more information and more factors into account than these long established international ratings agencies. It is likely to be called the African Credit Rating Agency or ACRA.
WORLD LARGEST CYBER BREACH EVER A massive data breach involving more than 26 Billion records has been reported. Researchers found the stolen records on an unsecured website, and found that the records contain information from major apps such as Twitter, Weibo, MySpace, LinkedIn, Adobe and others. Information in the leak is said to also contain government organisation data from the US, Brazil, Germany, Philippines and Turkey. It has been described as the Mother of all Breaches (MOAB). While the info does not immediately let crooks access your bank accounts, it can be enough for them to start tricking you, or others into giving them access to more and more sensitive information. Consumer should be on the look out for sneaky emails asking you to log in to accounts or to click on links. These types of attacks can be made to look legitimate by using some information from such data leaks. They may quote account numbers or mention information the crooks have learned about you in the data breach. Many passwords were contained in the data. So, if you tend to use the same passwords across multiple platforms or apps it might be time to consider an update.
DEBT REVIEW Confirmatory Affidavits A confirmatory affidavit is a legal way to say you know about and agree with the plan that has been given to the courts for your debt review. Quintin Zimmerman of Liddles Attorneys says that “as a debt review attorney, the greatest frustration we experience in expeditiously issuing debt review court applications is the delay in obtaining the original confirmatory affidavits from consumers”. TIP: Sign the confirmatory affidavit in black pen. The courts like that. This is not the time to get artistic.
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