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Media Info
 How to help others dump their debt burdens
3 September 2008
Imagine this: an elderly couple, just retired, their house paid up, take a second bond to start a small business to supplement their pension - then he falls sick and they stand to lose everything.
Wouldn't you want to help them?
If you would like to, and have financial experience, then you'd make an ideal debt counsellor.
You will find endless work opportunities with South Africa's more than six million people in debt, and the government and companies eager to help them get onto a sound financial footing.
Ulande Janse van Rensburg, a debt counsellor with Consumer Assist, the largest umbrella debt counselling organisation in South Africa - all debt counsellors are approved by the National Credit Regulator - is an accountant with a paralegal background who began helping those indebted and in trouble some years back.
When the new National Credit Act (NCA) came into effect in June last year, Van Rensburg promptly underwent training and became an accredited debt counsellor.
She worked for a company called Debt Control Management, which helps major corporates manage debt more effectively, and also has training programmes to help staff in businesses to manage money better.
But after the NCA came into effect they realised so many were in financial trouble and needed direct help and support, that they started Consumer Assist.
Consumer Assist now has two-thirds of SA's debt counsellors under their umbrella management, which gives consumers the added protection of a big, ethical company lending support and credibility, and the financial power to go the extra mile.
It also has close links with the National Credit Regulator, and uses their approved computer software for debt management.
In the case of the elderly couple, Van Rensburg says, they became so desperate that the old man's bed was moved into the shop, and when customers came in he would get out of bed to help them.
His wife took up part-time work at a school, but still they could not manage. By the time they contacted Consumer Assist they were desperate.
Van Rensburg said they were now in a much better position. They had sold their house - instead of the bank repossessing it, and now lived with their children, but they had ended the stress of endless bills.
"You have to have a lot of compassion to do this job," she says. "Many people who come to us are in tears, or so anxious they will call a couple of times a day.
"One client tried to commit suicide three times, and his psychologist would call from hospital and ask us to speak to him and assure him we had his debt under control."
Many of the people who contact them weren't in trouble because they overspent.
"For some, their salaries haven't kept up with inflation, or they or someone in their family became very ill, or it is someone who loses their job, and the people who gave them easy credit start hounding them," Van Rensburg says. "Some will phone people at 10.30pm at night or 6am demanding payment."
Andre Snyman, CEO of Consumer Assist, says "If you use a debt counsellor, it is possible to pay off your debt in a third of the time.
"You'll probably still be able to keep the car or home - or scaled-down versions, and learn the sort of financial management tips that in future can lead to you acquiring wealth."
"If you apply for debt counselling your vehicle and home cannot be attached for 60 days, in terms of the National Credit Act, and this often gives consumers the breathing space they and the debt counsellor need to structure an appropriate debt repayment package.
"Perhaps the most important part of our free service to the public is that we have a highly interactive website - www.consumerassist.co.za - with a debt calculator where within a few minutes you can calculate your debt situation, and see whether or not you need to use a debt counsellor," Van Rensburg points out.
"We've found some who have used the calculator and are not in debt have realised they could be saving or investing more money, and growing their wealth.
"It's a very useful tool, and none of the information is kept on the site, so it is completely secure and private," Andre Snyman said.
If, however, the debt calculator shows what you already suspect, that you are in serious financial trouble, the website can direct you to a debt counsellor close to you.
There is also a 24-hour call centre on 0861-21-22-23, which operates 365 days of the year, where basic questions can be answered and where agents can direct you to a debt counsellor.
Consumer Assist's debt counsellors abide by National Credit Act guidelines. They contact all creditors (companies or individuals the debtor owes money to), to delay action against the debtor.
Then the counsellor, with the aid of the software, helps advise the debtor on how to structure their payments so they pay debts off faster - while being able to maintain an acceptable lifestyle.
Debts that might have taken the consumer five years to pay off can be cleared within three years, and the debtor starts life again, debt-free, with a clean credit record and the sort of money-management knowledge that ensures they don't get into trouble again.
They have also learnt the techniques to make clever investments and build wealth.
As an example, once debts have been cleared, the former debtor now has money to plough into their bond and pay that off sooner, with the massive savings that means.
"You'll never get rich working as a debt counsellor," Van Rensburg says, "but it's incredibly rewarding work. You're able to make a real difference in the lives of people."
· If you want to train as a debt counsellor contact the National Credit Regulator www.ncr.org.za
FOR FURTHER INFORMATION www.consumerassist.co.za 0861 21 22 23 debt counselling call centre
Andre Snyman - CEO - Consumer Assist
aurelia.espag@consumerassist.co.za / 011 654 6018 (Languages: English, Afrikaans)
Source: The Star
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