February 2021 IDM Special Edition

Issue 2 of 2021
DO YOU
HAVE REALISTIC
EXPECTATIONS?

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
/ Enhancing Debt Counsellor efficiency and sustainability
/ Best customer support in the country – queries are resolved within 24 hours
/ Strong compliance and best-industry-practice implementation is at our centre
Call Chris van der Straaten
Head of Hyphen PDA | 082 557 0437
Or call our friendly support centre on 011 303 0060 - Option 2
or visit our website www.hyphenpda.co.za

FROM THE
IDM DESK
DON’T LET FINANCIAL
ANXIETY PARALYSE YOU
Getting help is the responsible thing to do
Shrinking incomes, uncertainty about the
future and the economy and high levels of
debt make it unsurprising that South African
consumers feel stressed and overwhelmed.
DebtBusters has confirmed in its recent
quarterly Debt Index, that real income has
shrunk across all income bands, in some
cases by 20% compared to 2016 levels.
To make up the shortfall consumers are
increasingly relying on unsecured debt.
Although payment holidays provided some
relief during the lockdown, when payments
recommenced even consumers who had just
been making ends meet found themselves
struggling. Unfortunately, being financially
burdened has now become the norm for
many people.

The combination of this, uncertainty about the situation the country is in
and their own future contributes to people feeling overwhelmed.
The risk of this is that rather than address the problem, people go into a
state of denial and do nothing or become paralysed by anxiety. This isn’t
helped by the fact that South Africa is a society where many people avoid
talking about debt for fear of being stigmatised.
It’s why this February for National Debt Awareness Month our theme at
DebtBusters and IDM is: “Get help if you’re not coping with debt -it’s
the responsible thing to do.” South Africa’s debt counselling sector is
world-class and well-positioned to provide support for people feeling
vulnerable because of debt and not wanting to talk about their problems
or stress their loved ones. When you call a reputable debt counsellor
registered with the National Credit Regulator, you’ll be dealing with
a financial specialist. The first thing they’ll do is an assessment to see
whether debt counselling is something that could help. This happens in a
safe space with an expert who considers the situation empathetically but
objectively. Alternatively, consumers who prefer to do a self-assessment
can use online tools such as https://www.debtbusters-client.co.za/register
Reputable debt counsellors will support consumers for whom debt
counselling is an option and who decide to go ahead with the process.
They will intercede with creditor and provide help and advice throughout
the process.
Importantly they will also negotiate monthly debt repayment reductions,
especially on unsecured debt such as personal loans and credit cards.
This provides substantial savings on the outstanding debts.
If you’re feeling out of control or think you might be in financial trouble
it’s always best to seek assistance sooner rather than later. The feedback
we get from many consumers is that they wished they’d sought help
earlier because doing so made them feel in control of their lives and
finances.

DEBT REVIEW
LESSON #1
Even if under debt review credit
providers may have their collections
people call you. You can simply refer
them to your Debt Counsellor and end
the conversation.

We are the champion
in your corner!
DebtBusters provides a remedy for financially stressed
consumers through effective debt relief solutions.
Over 1 million South Africans who are facing tight
budgets and are struggling with debt, have come to
DebtBusters looking for a financial solution.
086 999 0606
info@debtbusters.co.za
www.debtbusters.co.za

FROM THE EDITOR
Is it possible to be grateful that we made it out of 2020
alive and yet still moan about 2021? Is it too soon? Are
we being ungrateful?
At least we are not Elon Musk who lost $4.6 Billion the other day when
Tesla shares devalued a little, ouch! Imaging having that much to lose in
the first place, still, its got to be tough to go from the richest man in the
world to the second richest man. I suppose he will be laughing down at
us from his castle on Mars, with his robot butler, in years to come and
will have forgot all about it by then.
As for the rest of us regular Joes, the last few weeks have been tough. It
has been hard to get motivated and stay motivated about 2021, vaccines
or no vaccines. World powers America, Russia and China continue their
political games on the global stage while back home they are all a
hot mess. It’s hard to get other nations to listen to you when your own
people won’t. Even the lure of “vaccines for cooperation” has somewhat
lost its shine.

On the home front, vaccines have started to roll out to Presidents and
doctors alike (not ex-Presidents though). This promises an extra layer
of protection to the front line workers who have been putting their lives
on the line for us. This is actually something to get excited about, these
hard working people deserve all the help they can get. We can choose to
focus on good news like this.
There is, however, a ‘disconnect’ between the expectation of how 2021
would solve everyone’s problems, with the reality that 2021 is not going
to be a cake walk. This is the common battle between expectation and
reality. This challenge is what we dive into in this issue in some detail,
regarding debt counselling - the unrealistic expectations some people
have about debt review versus the realities of being in the process.
Having realistic expectations can really help people who are in the
process make good decisions, and to face the challenges that come their
way. We hope you enjoy the news, reviews, tips and interviews in this
issue that aim to both entertain and inform you.
So, yes, I think we can take just a moment or two to feel a little sorry
for ourselves that times are no easier in 2021. We can’t all run away
to another planet to escape our problems. However, even now, we can
choose to focus on the more positive things going on around us, and
work to find joy in our day to day activities. This can be our reality, and
for those who stick to the debt review process, their hopeful expectation
of ultimately getting out of debt will soon be met by the reality of being
totally debt free.

REDUCE UNNECESSARY
EMAILS & CALLS
ARE YOUR CLIENTS SIGNED UP TO DReX?
Encourage your clients to sign up on DReX and
instantly reduce requests for balances, statements
and payment confirmation. Now you can focus on
other revenue generating activities!
CLICK HERE
for the link to send to your clients
CONSUMER BENEFITS:
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Detailed statements
Access to debt review documentation
CLICK HERE
to upload a database & we’ll do the rest!
DReX simplifies the exchange of data and makes
managing the debt review process less admin intensive
+27(0)31 251 4151

REALISTIC EXPECTATIONS
C
NEWS
MEDIATION
TRAINING
REVIEW
O
NTENTS
COMPETITION
WINNER
DEBT REVIEW
SCHOOL
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BREAKING
NEWS

NCR STATISTICAL RETURN FOR
DEBT COUNSELLORS
The NCR has reminded Debt Counsellors that they were due
to hand in their Form 42 Statistical Return for the last quarter
of 2020 by mid month February 2021 (15th). If you forgot
to do so then make sure you send it through to the NCR at
dcreturns@ncr.org.za It is part of your conditions of registration
as a Debt Counsellor with the NCR.
2021 BUDGET SPEECH
Each year the Minister of Finance (presently Mr Tito Mboweni)
delivers a speech outlining the current financial situation for the
country and the plans for the coming months (and years) with
regard to spending. This year Covid-19 has hit the economy
hard (as regards income) and also necessitated a lot of extra
spending (on grants to support those without work and vaccines
etc). Basically income is down and spending is up. The Budget
speech also lays out what resources (how much money) will
be allocated to different portions of the country such as health
care, schooling, social services etc.

SARB BLOCKCHAIN PROJECT
Bitcoin has recently shot up to record highs amidst global
investor uncertainty. The virtual token or currency market
is growing in both use and acceptance worldwide. One
challenge for governments is that the systems are designed to
be decentralized and outside of easy control and regulation.
Locally the SARB and other institutions are working on a project
to see if the blockchain system can be sued to create a South
African token system. Imagine a digital blockchain version of
the Rand if you will.
The project has been running for several years as regulators
and legislators try to come to grips with the ramifications
and regulatory challenges such a system would encompass.
Recently, the project, which began back in 2018, has moved
into a second phase as 4 of the Major local the banks work
on a small “test” in a closed environment to see what all is
involved and figure out: what next?

DEBT REVIEW
EXPECTATIONS
VS REALITY

DEBT REVIEW EXPECTATIONS VS REALITY
ARE YOU BEING
REALISTIC ABOUT
YOUR DEBT REVIEW?
In business they say it is important to “under promise /
over deliver”. In other words, don’t promise too much
and leave your clients disappointed, rather work hard
and give the client more than they expected. This will
pleasantly surprise them and make them happy with your
service.
One of the common challenges facing consumers in debt review is that
they do not fully understand what the process will involve. They are
under-educated about the process, resulting in unrealistic expectations.
Then when those expectations are not met, they become disappointed
and disillusioned.
Has this happened to you?

DEBT REVIEW EXPECTATIONS VS REALITY
WHEN DEBT
COUNSELLORS
PROMISE TOO MUCH
Many debt counselling practices have a small team or
even an outside company whose job it is to talk to people
about debt review.
They will tell the consumer how wonderful debt review is, and how it can
really help them. This is true but…there are concerns in the industry that
some of these teams might be over promising. They may be painting an
unrealistic picture of how debt review is easy, debt review is just a way to
save money, debt review is not serious, and how people can enter and
exit debt review at a moment’s notice.
The result is that some people who enter debt review have the wrong
idea, that the process is a simple one, where credit providers always
cooperate, where courts always side with the consumer, and where
problems never come up.
Wouldn’t that be nice!

DEBT REVIEW EXPECTATIONS VS REALITY
THE DANGER
OF UNREALISTIC
EXPECTATIONS
If you purchase a product that is advertised to work “first
time, every time”, you will justly get upset if the product is
actually complicated and doesn’t work in every situation.
Maybe you bought one of those exercise machines they advertise online
or on TV. In only 2 weeks your winter fat will disappear. It should work in
only 15 minutes a day, but as you look down at the remnants of cake on
your plate, you are disappointed that it is much harder than promised.
You may soon find that exercise machine gathering dust in your garage,
or that amazing vegetable cutting gadget at the bottom of your drawer.
When consumers have unrealistic expectations of debt review, the same
thing happens. They start the process with enthusiasm, but when they hit
speed bumps along the way, they might foolishly think they can just walk
away, like they do with some many other things in life. This can have
disastrous consequences, and could even make things worse than they
were before.

EXPECTATIONS VS REALITY
CREDIT PROVIDERS
WILL LEAVE ME
ALONE ONCE I START
DEBT REVIEW
Some consumers seem to think that by entering debt
review, it will change the behavior of credit providers and
collections agents. While for the most part the banks and
big credit providers try to make everyone in their business
aware that consumers have entered debt review, they are
often very big companies where one department doesn’t
always know what another is doing.
Sadly, some credit providers will still take a chance and try to negotiate
with the consumer without the help of their attorney or Debt Counsellor.
This bad behavior should be reported to your Debt Counsellor.

EXPECTATIONS VS REALITY
SAVE 60% ON YOUR
MONTHLY DEBT
REPAYMENTS
Some debt counselling practices use the average statistics
of their clients in their advertising to try help consumers
think about debt review. This can create an unrealistic
expectation on the part of a brand new client, thinking
that they too will only pay 40% of what they were paying
before the debt review.
The reality is that each person’s case is unique. True industry averages
help guess what might happen but each matter has to go before a
Magistrate, who is the one who actually decides what will happen.
Also if consumers do not give the Debt Counsellor all the facts when
enquiring about debt review, they should not be surprised if they end up
paying something slightly different to what they were initially told, based
on incorrect information.

EXPECTATIONS VS REALITY
THE DEBT
COUNSELLOR
WORKS FOR ME
Some consumers think that the debt review is only for their
benefit. They think the Debt Counsellor is like their own
knight in shining armour who will always be able to work
things out to their benefit.
While it is true that Debt Counsellors get a fee for the work they do, these
funds from the consumer would normally be going to the credit provider.
So, in a way both parties are paying for the Debt Counsellors service.
Debt Counsellors will use their knowledge of the law to protect
consumers from abuse by credit providers, but they have a duty to find
the best arrangement for all parties - a realistic and sustainable way
for the consumer to pay, and the credit providers to get what is owed to
them.
It is also important for consumers to realize that Debt Counsellors have
more than one client. You may have to be patient, from time to time.

EXPECTATIONS VS REALITY
IF I CAN’T PAY, THE
DEBT COUNSELLOR
WILL TAKE CARE OF IT
Some consumers think that because the Debt Counsellor
has worked so hard to help restructure what they have to
pay towards their debts each month, that if they run into a
problem paying one month, the Debt Counsellor can just
fix that situation with the credit providers.
Debt review is built around the principle of consumers repaying their
debts. The best way to do that is in regular manageable amounts, month
after month. This is the industry standard. If a consumer runs into trouble
paying their debts, and if they get in touch with the Debt Counsellor well
in advance, it is possible that the Debt Counsellor can talk to the credit
providers or even take the matter to court but…if you do not pay, then
the reality is, that some credit providers may walk away from the debt
review.
This means they could legitimately start new legal action against the
consumer to try to collect their debt outside of debt review.

EXPECTATIONS VS REALITY
I CAN LEAVE ANY
TIME I WANT
Some consumers think that they can decide to leave the
debt review at any time. They feel it is like many other
services they use in life. If they get bad service or things
are not working out like they thought they can just walk
away from the process and go back to how things were.
The problem is that things were bad before your debt review, very bad.
That’s why you needed debt review in the first place. More than that,
debt review is done via the courts and is a legal process. Once it is
begun, it is hard to just walk away from the process. Once the credit
providers regularly started getting money each month again they were
happy. If you try to mess with that arrangement, they will not react in a
positive manner.
It is like divorcing your spouse. Once you have divorced them they will
be rather surprised if one day they come home to suddenly find you
sleeping in their bed again, as if nothing happened. They will probably
not be happy to see you, even if you changed your mind after a few
years. More than that you have used a legal process (divorce) to change
your relationship.
The same is true with debt review. Once the legal process is begun the
only way to finish the relationship is to finish the process. This has to be
done with the help of a Debt Counsellor and all the debts need to be
settled.

EXPECTATIONS VS REALITY
DEBT REVIEW IS
QUICK AND EASY
Some consumers are told that their debts will be settled
quickly and the process is easy. After a year or two they
grow confused about why it’s taking so long. They may
not even know how long their plan to repay their debts
will take, this can result in frustration.
While it is true that when consumers enter debt review, many credit
providers will slash interest rates and will stop charging monthly fees, but
this still leaves the thousands of rand in debt that is owed to the credit
provider. Paying that off in small amounts takes time.
Many debt restructuring plans are made over many years to make
the monthly repayments realistic and manageable for consumers. It is
important for consumers to realize that they were going to take years to
actually settle their debts before they entered debt review. Many would
have received judgments against their names, and could have been
repaying debts for as long as 30 years. If a consumer has a car then it is
not unrealistic to expect to repay debt over 5, 6 or 7 years anyway.
These days, many debt review plans are scheduled over 60 months. You
can get a copy of your plan from your Debt Counsellor so that you can
check how far along you are in repaying your debts.

DEBT REVIEW EXPECTATIONS VS REALITY
MANAGING
EXPECTATIONS
Debt Counsellors can help their clients have a realistic
view of the process by spending enough time actually
counselling their clients, spending time explaining the
process and educating their clients about the process after
the initial consultation.
More and more we are seeing Debt Counsellors who host weekly
online workshops or podcasts for clients. Other Debt Counsellors have
newsletters and emails they send to clients during the process. Others
have catch-up sessions with clients and the best Debt Counsellors even
organize for their clients to read that Debtfree Magazine each month (we
recommend that)!
Debt Counsellors can make use of the complete guide to debt review
booklet (also from the Debtfree Magazine team) to help their clients
better understand the process and to track their own progress.
Debt Counsellors can also improve their contracts with consumers to
state what they will, and won’t do for the client and what is and isn’t
expected of the client. This is an area in the industry that still needs
attention.

DEBT REVIEW EXPECTATIONS VS REALITY
DEBT REVIEW COULD
EXCEED YOUR
EXPECTATIONS
You may have entered debt review just looking to regain some control
over your finances. You may have been drawn in by the promise of no
harassment from credit providers, or the chance to save 60% on your
repayments. Sure those promises sound great, but debt review can be so
much more than all these things, it can be the hard reset your entire life
was looking for.
things, it can be the hard reset your entire life was looking for.
If you work along with your Debt Counsellor to get the process in place,
and keep up payments throughout then, yes, you will get rid of your
debt. You may even save thousands of Rand on fees and interest through
the kindness of your credit providers.
You may, however, perhaps go even further. You may really educate
yourself about financial matters. You may learn to budget and manage
your money each month – a skill that will benefit you throughout your
life. You may learn to save, and plan for a secure financial future.
Your family might learn to work together towards a common goal and
communicate better than ever... or maybe not.
We don’t want to make any unrealistic promises.

ADR NETWORK
SA MEDIATION
TRAINING REVIEW
The need for mediation, also known as dispute resolution,
is growing. Changes to local and international laws
are promoting the use of mediation instead of flooding
already overwhelmed courts with new legal matters.
Most South Africans are fairly familiar with the concept of mediation. The
CCMA led the way in regard to labour disputes for many years in South
Africa, and in many cultures it is common for two parties to sit down and
attempt to work through the problem.
There are many forms of mediation, and ADR Network has an online
specialty course available in each area. For example, there are course
about medical negligence, sporting disputes, discipline at school, Human
Rights & Constitutional disputes and even mediation relating to aspects
of the National Credit Act (something that greatly interests us).
ADR Network SA invited Debtfree Magazine team members to attend
their 5 day online training program so that we could share our
experience of the training process with our readers.

ADR NETWORK MEDIATION TRAINING REVIEW
DAY ONE
On day one (of 5 days) we spent a little time getting to
know both instructors (we had two during our training).
We discussed the overall concept of mediation and
different approaches to mediation.
Then we were introduced to one of the key aspects of the training; Role
play of mediation between two disputing parties. It is one thing to talk
about it, but much more discerning to see it in action.
Each day also brought its own homework. Set reading and mini projects
or reports to build on lessons learnt.

ADR NETWORK MEDIATION TRAINING REVIEW
DAY TWO
A detailed discussion into how history plays a role in
each dispute, swung from international disputes to
neighborhood conflicts.
We also discussed the ethics of mediation. Day two saw students starting
to practice their skills (or lack of skills) doing the role play exercises. It
can be nerve wracking to be front and center, and many decided to wait
another day before volunteering. A few brave souls took the plunge, and
afterwards the group got to analyze strengths and weaknesses and ways
to practically improve.

ADR NETWORK MEDIATION TRAINING REVIEW
DAY THREE
By midweek everyone in the course was alot more relaxed.
Students began taking the opportunity to play mediator in the role play,
and everyone seemed more open to trying their new skills during the
daily role play exercises. Much of the day was also spent looking at how
people try to avoid conflict or to deal with conflict that comes their way.

ADR NETWORK MEDIATION TRAINING REVIEW
DAY FOUR
The morning session centered around the role of
confidentiality and privileged communication. We then
looked at Court Annexed Mediation and Rule 41 of the
Superior Courts Rules, and how this will play a growing
role in the future of litigation in South Africa.
Then there was role play of a different type of mediation, with the usual
follow up discussion and breakdown of what had been accomplished.
By now the class had got into the swing of things, and although each
example (all broadly based of real world cases) was complex, we were
starting to feel a lot more comfortable with managing the process. By
the last day all members of the class would have played both the role of
mediator and one of the parties to a dispute. There were a few Oscarworthy
performances!

ADR NETWORK MEDIATION TRAINING REVIEW
DAY FIVE
Some of the last day was spent talking about the
practicalities of how to set up an alternative dispute
resolution practice, and what is involved. The impact and
complications of Covid-19 were also addressed.
ADR Network SA has a panel system and offers mentorship between
members, and ongoing support which helped ease everyone’s fears of
being thrown into the deep end. The one-day specialization courses that
further focus in on particular aspects of mediation and dispute resolution
are also helpful.
Debtfree will be joining the specialized course dealing with credit and the
NCA in the near future, as we look to learn more about what ADRAs (as
now identified in the NCA) actually can offer as legitimate services.

ADR NETWORK MEDIATION TRAINING REVIEW
WE CAN
RECOMMEND
THE COURSE
After a week of online learning, class exercises, role
play, homework and lots of reading, we can happily
recommend the course to those wanting to start a
mediation practice of any type.
The atmosphere was pleasant and the learning heavy focused on
gaining experience in a short time period, and then building confidence
in the mediation process and one’s own abilities.
If you are thinking of moving into the Mediation space or adding it as a
new service to your existing practice then ADR Network SA will have an
affordable learning option for you.

COMPETITION
WINNER
ADR Network SA are happy to announce
the winner of the 5 Day Online Course, 1
Day Specialization Course and 1 year Panel
membership prize all valued at R9950.
THE WINNER IS
Samantha Feldtman
To find out more about ADR Network SA and the
courses we offer in dispute resolution head over
to: www.adr-networksa.co.za

DEBT REVIEW
LESSON #2
If you receive a summons while
under debt review you must not
ignore it thinking you don’t need to
do anything. Immediately call your
Debt Counsellor.