Debtfree Issue 202305 - DB

Issue 05 of 2023 

SPECIAL 

EDITION

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 

So, winter arrived and decided it wanted to freeze 

me to death. Brrrrr. 

I mean, we are used to it being cold during winter, obviously, but why 

is the Antarctic trying to get into my house? I wake up and expect 

penguins in the room. And with Eskom playing the loadshedding 

game (and politicians playing the blame game) it only adds to the chill. 

Winter is cool and all that, and yes in some areas dams are filling up 

when it rains (if you live in those parts of the country this is a very 

good thing), but I am just tired of being cold. 

If you pop past my place you will find me sat in front of a heater 

basking in the joy of just being not a popsicle. I find it kind of hard 

to concentrate (or move around, or exercise, or get motivated to 

get out of bed) at this time of year. Its as if my brain tries to shut 

down until spring arrives. Well, that’s not going to work. 

You might be feeling the same. If so, check out our winter warmer tips 

that won’t break the bank. You could even say they are ‘hot’ tips… 

Talking about banks, we discuss what’s happening in the world of 

finance and what one bank has recently been saying about debt 

review. You may not like it.

We also talk about how the temperature is not the only thing 

going down. Nope, some sneaky businesses and restaurants are 

shrinking the food and drinks we love so much. This world wide 

phenomenon is called shrinkflation. If you have never heard of it or 

if you, like most of us, have not noticed it going on then the article 

in this issue may open your eyes to this clever marketing strategy. 

We also have a look at what happens if you lose your job while in 

debt review. Its never a good time to lose your job but for those 

in debt review it creates an extra layer of complexity. We try look 

at best case and worse case scenarios. Hopefully you never find 

out how stressful this can be but it is good to consider what could 

happen and have a strategy in place. 

We hope you enjoy the issue. The tips and advice are all aimed at 

helping you learn more about handling your finances and making 

a success of the debt review process. We hope that you stay warm 

and gainfully employed while at work or home and that you are the 

only cool thing in the room at any given time. 

Speaking of what’s cool, wouldn’t it be cool to pay off all your 

credit providers? It sure would. Keep up the good work and soon 

summer will arrive and hopefully you will be a season or two closer 

to being totally debt free.

FROM THE 

DESK 

DEMYSTIFYING DEBT 

COUNSELLING 

There are an estimated three 

million South Africans who 

could qualify for and benefit 

from debt counselling, but 

who never apply. 

While the need is considerable 

and will increase as a result of 

stubbornly high inflation and 

rising interest rates, only between 

120,000 to 140,000 people a year 

apply for debt counselling.

The reasons vary but are typically because people have limited 

knowledge or misconceptions about the process, are concerned 

about the stigma of being in debt counselling or wait until it’s too late. 

Over the past seven years inflation has eroded take-home income 

by nearly 40%. To make up the shortfall people take out personal 

loans. As a consequence, debt-to-income ratios are at or close to alltime 

highs. People who find themselves in a debt trap and seek help 

should be lauded for being responsible rather than be judged. 

DebtBusters knows that debt counselling is an effective process. 

Interest rates for unsecured debt can be reduced by up to 90% and 

the time consumers have to pay off debt can be extended, allowing 

them breathing room on their monthly finances. 

There has been a ninefold increase in the number of people who 

successfully completed debt counselling since 2016. Despite this 

many, who could benefit instead try to manage their financial 

situation themselves. This can get them deeper into difficulty. In some 

cases, they risk getting their houses and cars repossessed because 

they didn’t understand the process, heard a rumour or were too 

embarrassed to speak to a debt counsellor. 

The experience of someone currently undergoing debt counselling is 

instructive: “Before joining debt review, I was incredibly wary of doing 

so because of the negative stigma and reviews found while doing 

research online. It wasn’t until I contacted my current debt counsellor 

and had a comprehensive explanation of what and how the process 

works, that I truly understood what it was, and I had to do to get my 

finances back on track. I am three months away from being debt free 

and I have never been happier. Debt review works”

DEBT REVIEW 

If you have a vehicle that you have 

financed via the bank they will 

require you (as part of your contract 

with them) to insure the vehicle 

in case it is in an accident and is 

written off. That way they know they 

will get their money back.

CONTENTS 

SHRINKFLATION 

HOW SNEAKY MARKETING PEOPLE 

ARE MAKING YOUR MONEY SHRINK 

WINTER 

WARMERS 

ON A BUDGET 

WHAT HAPPENS 

IF I LOSE MY JOB 

WHILE IN DEBT 

REVIEW? 

NEWS 

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 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.

SHRINKFLATION: YOUR MONEY IS SHRINKING 

HONEY, I SHRUNK... 

EVERYTHING 

Have you ever bought a packet of 

sweets or chips, only to open it and 

find that it contains more air than 

snack? 

You may be confused by childhood memories 

when everything seemed bigger and chock-ablock. 

Was it just because you were smaller? 

A new wave of clever money saving tricks is 

being put in place by food brands, restaurants, 

service providers and shops. It’s called 

shrinkflation and it is secretly hitting you right in 

the wallet. 

So, what is Shrinkflation and how is it subtly 

ruining your favourite snacks and drinks?


WHAT IS 

SHRINKFLATION? 

We all know that the cost of living is going up. It seems 

that whenever you hit the shops, products cost more. 

You may have noticed this, but something else very sneaky is also 

happening. Some products are also quietly shrinking in size, without 

you realising it. 

This is shrinkflation. 

It’s a cunning trick that companies use to make their products visually 

appear unchanged, while reducing the quantity you get, sneaky right? 

Shrinkflation may involve adding a lot more air in a bag of chips than 

before, or maybe few less chips sitting next to your favourite burger. 

Even the patties might be the same size from the top but thinner than 

before. New packaging may appear as way to make a product look up 

to date, but can be used to hide the new reduced weight. 

Another way companies do this, is by changing the product 

ingredients. This can also explain why cherished foods or drinks from 

your childhood no longer taste the same or hit the spot. While they 

may be packaged the same, and look the same as before, their makeup 

may have changed to cheaper ingredients.


WHY DO COMPANIES RESORT TO 

SHRINKFLATION? 

It’s all about the money. Companies 

and restaurants know that consumers 

are sensitive to price changes these 

days, so instead, they reduce the 

weight of their products and meal sizes. 

We all know that transport costs have gone 

up, electricity prices have gone up resulting 

in ingredient prices going up all the time. 

This means that companies and restaurants 

are making less and less profit on items than 

before. 

When the cost of ingredients or production 

increases, companies face a dilemma. They 

must either raise the price and risk scaring off 

their existing customers, or they need to find 

a way to maintain the appearance of the same 

price while actually giving you less. 

But how do they get away with it? Ah, that’s 

where the clever disguises come into play. 

Companies know that most of us aren’t 

walking calculators, constantly comparing

weights and prices. We forget how many 

grams were in that chocolate the last time we 

bought it, or how many millilitres are in that can. 

You may always grab that R100 pack of meat 

from the shop not realising that the contents 

are slowly getting smaller and smaller while 

the price stays the same. 

So, they jazz up the packaging with flashy new 

labels, bright colours, and catchy new slogans, 

hoping we’ll be too distracted to notice the 

disappearing act. That curvier bottle of soda 

might look cooler, but it might hide the fact 

that it feels different because it’s lighter than 

before. 

Let’s face it, they’re counting on the fact that 

we often buy products out of habit, without 

paying too much attention to the details. 

They’re banking on our love for familiar brands 

and the belief that our beloved treats remain 

untouched. Sneaky, sneaky!


SPOT THE 

DIFFERENCE 

Here are some examples of products 

that have changed size or shape and 

are actually giving consumers less 

than before. 

In 2017 some smaller Coca-Cola cans went 

down from 355ml to 330ml, then in 2020 they 

shrunk to 300ml.


KNOWLEDGE 

IS POWER 

Now that you’re aware of 

shrinkflation, you can keep an eye 

out for these clever tricks. 

When you hit the shops, take a moment to 

compare prices and sizes, and don’t be afraid 

to read those labels. It’s always a good idea to 

check if your favourite snacks are still worth 

the price. 

Shrinkflation may make us feel like we’re 

getting the short end of the stick, but it 

doesn’t mean we have to settle for less. By 

staying informed and making mindful choices, 

we can keep those tricky companies on their 

toes and reward more generous ones. 

So, next time you’re at the grocery store, keep 

your wits about you. Stay sharp and show 

those sneaky shrinkflators that you’re no 

pushover when it comes to value for money!

WINTER 

WARMERS 

ON A BUDGET

WINTER WARMERS ON A BUDGET 

WINTER IS 

COMING... 

Brrr! Ned Stark was right, and winter 

is here, and along with it comes 

those bone-chilling temperatures 

that make us want to hibernate like 

cozy bears. 

Especially when Eskom turns off the electricity 

left and right. 

But here’s the problem: staying warm can be 

a money guzzler, especially if you’re on a tight 

budget. 

Don’t worry, though! We’ve got some sneaky 

tricks up our thermal sleeve to keep the 

Antarctic at bay without emptying your 

pockets. 

So, grab your favourite snuggly blanket and 

get ready for some budget-friendly, heatseeking 

magic that’ll have you feeling toasty in 

no time.


TOP TIPS TO 

STAY TOASTY 

It’s time to outsmart winter and 

show it whose boss, all the while, 

keeping those coins jingling in your 

pocket. 

But how can you stay warm at this time of 

year without breaking the bank? 

Let’s dive into our warm and wallet-friendly 

tips.


BE THE 

ONION 

When it comes to keeping yourself 

warm on a budget, one trick is to 

dress in multiple layers. 

Rather than turn up the heater or add another 

log to the fire, why not first put on warm 

clothes and pile on multiple layers to trap your 

own body heat? 

Try adding a vest or long sleeved top to your 

outfit. Throw on a thicker tracksuit top or 

jersey, and if that doesn’t work, put a blanket 

over your legs while you are sitting down. 

Don’t forget your cosy socks and slippers, or 

rubber soled shoes to keep your feet off the 

cold floor.

The floor can be an unseen enemy 

of staying warm. It is often a good 

idea to make your floors warmer 

by using rugs and carpets, but be 

prepared for the extra effort they 

require to clean. 

If you work from a desk, and like to 

take your shoes off then consider 

finding a little something to put 

under your toes before they turn 

blue and fall off. A rug or even the 

cat’s scratchy toy will work just 

fine. 

Oh, and if it gets super chilly, don’t 

forget to cover your head with a 

beanie, or warm scarf. Rather be 

a hot head than suffer from brain 

freeze.


SHUT 

UP 

It’s important to close that window if 

you want to keep the warmth inside. 

Ventilation is nice and all that, but it can quickly 

lower the temperature in your home. Even a 

tiny gap in an isolated room can let cold air in 

throughout your place at a frightening rate. So, 

if you open a window, make sure to close it 

again promptly. 

Also, be on the lookout for any sneaky draughts 

under doors or windows. Why not slide that 

door mat right up against the door frame or get 

one of those sand filled door stopper snakes 

(or make your own). 

During the day, when the sun is shining, open 

your curtains to let the warmth in, but be sure 

to close them before the sun sets, to trap that 

heat inside.


THE HEAT 

IS ON 

OK, let’s talk about heaters. Few 

things beat a nice warm heater 

bumping up the room temperature, 

except maybe a nice warm 

crackling fire. 

But we all know that running a heater comes 

at a cost. Electricity can be quite pricey these 

days, so if you’re looking for a more budgetfriendly 

option, consider using a gas heater. 

Regardless of the type of heater you have, 

it’s normally best to heat the room and 

then retain the warmth instead of running it 

nonstop. Get it to the right temperature then 

hit that off switch. 

You can also save energy by heating smaller 

areas, and closing doors to keep the warmth 

contained. Try warming the most frequently 

used space, or the space that you know will 

be in use when the chill sets in.


GO TO 

BED 

When your parents used to tell you 

to go to bed, you probably viewed it 

as a punishment. When you get a bit 

older, your former punishment can 

turn into your end of day reward (or 

midday if you get a chance). 

To keep warm at night, you can cuddle up 

with hot water bottles or briefly use an electric 

blanket before you get into bed. But remember, 

once you’re all nice and toasty, turn off the 

electric blanket. No need to slow cook yourself 

all night. 

Oh, and don’t forget to add an extra blanket on 

top of your bed for added warmth.


INSIDE 

OUT 

Did you know that warm food and 

drinks can help you stay warm 

on the inside? So, whip up some 

delicious soups and stews to keep 

yourself cozy and satisfied. 

If you find yourself feeling chilly, then why not 

make a cup of coffee or tea? You don’t have 

to keep running the kettle if you put some 

water in a flask when you first boil the kettle. 

If you are scared of too much caffeine turning 

you into scary mommy, then try some hot 

water, lemon and honey instead.


JUMP 

AROUND 

It’s true that most of us put on a few 

extra kilos in the winter months, and 

come summer, we all moan about it. 

Here’s a fun tip: a little exercise can actually 

warm you up! So, get moving, do a quick 

workout or some jumping jacks. 

Afterward, reward yourself with a warm 

shower, and then bundle up in your comfy 

layers to keep that warmth locked in.


YOU’RE SO HOT 

RIGHT NOW 

Eskom hates winter as we all run 

around turning on the heaters and 

running the geysers all the time. 

When it comes time to pay the electricity bill, 

you might be in for a bit of a shocker this year. 

But remember, staying warm doesn’t have to 

break the bank. 

Throw on some socks and an extra jersey, 

grab that cup of tea or coffee from the flask 

and sit under that extra blanket, or get active 

and warm up that way. 

Why not try out some of these toasty tips to 

stay cosy this winter, all while being kind to 

your wallet?

WINTER WARMING TIPS ARE 

SO HOT RIGHT NOW

DEBT REVIEW 

If you are in debt review you can 

get insurance to cover against 

losing your job (retrenchment) 

or disability. This cover can 

cover your debt and debt 

review repayments. Speak to 

your broker about Credit Life 

Insurance to find out more.

No more debt-stress. 

Let’s get it sorted. 

We’ll get your interest rates right down. You’ll 

make one consolidated payment a month. You’ll 

have more cash to live on. Your assets will be 

legally protected. Sorted. 

0861 365 910 

www.debtbusters.co.za 

info@debtbusters.co.za 

NCRDC2484

WHAT 

HAPPENS IF 

I LOSE MY 

JOB WHILE 

IN DEBT 

REVIEW?

LOSING YOUR JOB DURING DEBT REVIEW 

OH NO I’VE LOST 

MY JOB 

The economy is not doing great 

and we all worry about losing our 

employment and source of income. 

Even if we live in a household where several 

people are earning income, a sudden loss of 

employment can be financially crippling. 

For those who are in debt review trying to get 

rid of their debt, the thought of losing your job 

is terrifying. It can smash your best laid plans 

and derail all the progress you have made. 

Let’s talk about what might happen if you are 

in debt review and then get retrenched.


LOSING YOUR 

JOB 

No one wants to lose their job. We 

need money to get by these days and 

while UIF may give us something to 

fall back on, it will greatly impact on 

our ability to make ends meet. 

For those in debt review who have courtordered 

debt obligations to repay a certain 

amount each month, it can be very stressful. 

Another factor to consider for those in debt 

review is that while others might simply rely 

more and more on credit during such a crisis, 

this is not an option for those who have entered 

debt review (even those who try to leave debt 

review at this time). 

Once you have begun debt review, credit 

providers wait for you to pay off your debts 

before letting you use more credit.


IF YOU KNOW IN 

ADVANCE 

If you hear rumblings that something is coming or if 

your company gives you sufficient warning then you 

should immediately talk to your Debt Counsellor. 

They can reach out to your credit providers and apprise them of what 

is coming. They could even go back to court (which would admittedly 

create some costs) and ask for an order delaying payments. 

Most credit providers are prepared to consider a reduced payment 

plan for a short time or a skipped payment or three if they know 

about your challenges in advance and get corroborating information 

to show that your need is real (eg. a notification from your employer). 

In such a case, it might be possible for the Debt Counsellor to ask 

nicely and the nice credit providers to make a plan for you. They may 

also be able to talk you through any insurance claims that can be 

made (depending on what policies are in place). 

Note: not all credit providers might agree and some may make 

outrageous demands or just refuse and plan to start their old 

collections methods. In that case, you and your Debt Counsellor will 

have to work with your attorney to try ask a court to force them back 

into the debt review (hopefully by then you will have work again).


IF IT’S 

SUDDEN 

If you find out last minute and the 

Debt Counsellor cannot talk to the 

credit providers in advance it can 

result in your credit providers not 

cooperating. 

It is somewhat likely that one or more of your 

credit providers may decide to try duck out of 

the debt review process and start new legal 

action against you. While you can defend this, 

as mentioned previously (using Section 86(11) of 

the National Credit Act), it can be stressful. 

But even if you get last minute notification you 

should still talk to your Debt Counsellor about 

how you can adjust your budget, make changes 

to reduce expenses and possibly make part 

payment towards your debts (or claim against 

insurance as we will discuss next). 

Do not, just stop paying your debt review 

instalment and not tell anyone. That will just 

cause even more problems.


BEST CASE 

SCENARIO 

If you are able to apprise your Debt Counsellor of the 

problem and get some advice in advance, that is best. 

You hopefully will be able to adjust your spending to match any 

UIF payments. Also, with advanced warning they can assist you in 

speaking to your insurance provider about your credit life and/or 

retrenchment cover. 

Many Debt Counsellors put their clients in touch with FAIS compliant 

advisors who help consumers entering debt review to get cover for 

death disability and credit life cover. If you have done so then a claim 

can be made and some policies will cover debt review payments for 

9 months or more while you look for work. Some policies even cover 

school fees and other costs during such a stressful time. 

As with all insurance, if you never need it, you may feel it is money 

wasted but if you do need it and it helps you through a rough patch 

you will cry tears of joy that you had the policy. 

Then, hopefully during this time, while you have arrangements for 

reduced payments or have insurance cover your debt repayments, 

you are able to focus on getting a new job or starting your own 

business to bring in income. Then you can resume your debt review 

obligations and continue your journey to getting out of debt.


WORST 

CASE 

If, unfortunately, you do not have 

insurance or if your credit providers 

all refuse to make arrangements 

(which they do not have to) things 

will get complicated and stressful. 

If you have a history of poor payment, your 

credit providers may not want to make 

arrangements with you or may feel that you 

simply will not honour them. They may prefer 

to try push things back into the old collections 

process, with all its calls, letters, sms and even 

legal action. 

You may find that you have to stop payments 

towards your debts entirely (it is best to always 

try and pay your creditors something, according 

to your household monthly income during this 

time). This may effectively bring your whole debt 

review crashing down. 

While it might be possible to defend legal action 

at court level by pointing to the fact you were in

debt review, if you have not been trying 

to pay something during this time or if 

you never bothered to tell your Debt 

Counsellor and credit providers what 

was happening, it is unlikely that a court 

will side with you. And there are costs 

to try and defend such matters. 

All the power shifts to your credit 

providers and they will get judgments 

and pester you for payments for years 

to come. You will also still have the debt 

review status on your credit reports 

until your debts are settled and will be 

forced to repay what you owe. Only 

once this is done will you re-enter the 

credit market (if you ever want to deal 

with these nasty credit providers again). 

It is a world of stress and pressure like 

the old days before you entered debt 

review.


TALK TO YOUR 

DEBT COUNSELLOR 

If you are worried about possibly losing your job one 

day then talk to your Debt Counsellor about FAIS 

compliant insurance brokers or suppliers. Ask if you 

already have cover for such events. Get the info now, 

long before you might even need it. Hopefully, you 

never need it. 

If you see trouble brewing at work or in your business then discuss the 

matter with your Debt Counsellor. They will be able to help you do 

what you can with the resources you have available to you. 

Even if things go wrong suddenly, reach out to your Debt Counsellor 

and discuss your options. You may have to face some stress, obviously, 

but perhaps there are ways you can reduce your stress about your 

budget and debts. 

Your Debt Counsellor will help you do what you realistically can and 

many nice credit providers will try and voluntarily assist you with some 

leniency. 

While things will still be tricky this will enable you to rather focus on 

finding a new job.

BREAKING 

NEWS

THE REPO RATE GOES UP AS 

THE RAND GOES DOWN 

As anticipated, the SARB Monetary Policy Committee 

decided to push up the Repo Rate (by 50 basis points) during 

May 2023. This means the Repo Rate is now 8.25% with the 

Prime Rate at 11.80%. 

This pushes the rate to a 14 year high as electricity woes, 

inflation woes and political woes continue. Though oil 

prices are dropping and Stats SA says the inflation rate is 

slowly falling, it remains to be seen if this latest repo increase 

will finally turn things around and perhaps allow for a little 

easing in the future. 

Those with credit accounts and facilities will now have to 

pay more each month towards their debts.

THE RAND GETS 

A MAKEOVER 

South Africa is in the process of updating its notes and coins 

to fresh designs. 

The design changes are being made in an effort to add new 

security features and incorporate advanced technology to 

combat counterfeiting. 

As technology advances, counterfeiters find new ways to 

copy and reproduce fake currency, so updating the designs 

and incorporating advanced security features to notes helps 

to maintain the integrity of a country’s currency and protect 

the economy.

FNB DECOMMISSION THE 

OLD INBOUND PHONE LINE 

Please note that come 1st June 2023, 

the old 087 736 4722 number is being 

discontinued. 

The current FNB Inbound Call Centre 

Number is 087 730 1166 (for all Debt 

Review Collection queries).

IMAS 17.3S 

After a series of meetings with Debt Counsellors association 

DCASA, iMas has confirmed that they will be adjusting their 

previous 17.3 process to closer match the NCR Task Team 

guidelines. 

They will now allow for up to a 4 month extension of 

repayment term as long as documentary proof of the 

situation is supplied.

DEBT REVIEW 

Your Debt Counsellor will work 

with you on your monthly budget 

(and probably review annually). 

They will make sure you have 

some funds set aside for 

unplanned emergencies, saving 

toward annual expenses (car 

service) and enough set aside for 

your insurances.

Debtfree Issue 202305 - DB

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