Debtfree DIGI July 2016

The South African credit market needs individuals and organisations that can pioneer a new way
of thinking, a new vision for the future. According to the latest Credit Bureau report, 60% of the
adult population in South Africa is using loans to finance their lifestyle. Almost 50% (10.5 million)
of these individuals are at least three months in arrears with their debt repayments. The financial
wellbeing of these South Africans is precarious.
The debt review industry needs a shake-up and a new way of thinking, similar to what Discovery
did in the Health Insurance space.
A paper by Anna Orthofer on wealth inequality shows that 10 percent of the South African
population own at least 90-95 percent of all wealth. The Debt Review industry deals with people
on the opposite end of this wealth spectrum. And the few that have declared themselves overindebted
are the tip of the 10.5 million iceberg.
The exciting opportunity lies in working with people to move them from being cash flow negative
to net worth positive. This was the key message delivered by Clive Pintusewitz, CEO of the DCM
Group at the recent 2016 Debt Review Industry Awards in Cape Town. According to Clive, the
focus needs to change from focusing on just managing debt to building assets, in addition to
securing income and cash flow.
In this world, Debt Counsellors have the opportunity to grow into financial coaches and planners
making a valuable contribution to the net worth of ordinary South African families.
The DCM Group is working on the bold dream of changing the approach to not just debt
rehabilitation but the ongoing journey of what happens next. Watch this space...
* Source: Source: Anna Orthofer. 2016.
“Wealth inequality in South Africa: Insights from wealth surveys and tax returns data,” University of Stellenbosch. Unpublished.
IN A NUTSHELL is brought you by the DCM Business Partnership Programme, designed to
support debt counsellors and consumers during the debt review process, in collaboration with
the National Payment Distribution Agency (NPDA). For help, contact the NPDA on 0861 628 628.
If you have suggestions for topics that you would like covered in future, please email info@dcmgroup.co.za
Debt Review Awards Winner 2014 and 2015:
NPDA: Payment Distribution; Client & Customer Service; Industry Support & Engagement
Care Premier: Debt Counselling Software