Updated 22.10.2022

DebtBusters – Debt Counselling & Consolidation

Getting loans is a good way to pick yourself up off the ground when you are hit by bills, unforeseen expenses, expensive dreams, or even unavailable capital. But if you don’t manage debts well, they can pile up and lead you in a downward spiral that could see you lose treasured property or close your business. DebtBusters deal with debts. They help you manage your debts and seek alternative ways to pay the overwhelming ones.

How Does DebtBusters Work?

Debtbusters provides debt management services and counselling to South Africans. Helping to reduce interest rates, save money and prevent homes and vehicles being repossessed. It is part of the Intelligent Debt Management Group (IDM Group). They have been helping thousands of individuals saved millions in interest rates and fees since 2007.

https://youtu.be/qgDAbTMoQO0

What Services do DebtBusters Offer?

  • Debt Counselling
  • Debt Management
  • Debt Consolidation
  • Insolvency
 Debt CounsellingDebt ManagementDebt ConsolidationInsolvency
Avoids having to sell my house to release any equityXXX 
Stops interest building up   X
Creditors are obliged to helpX  X
The arrangement runs for a fixed periodXX X
Creditors should stop chasing meXXXX
It avoids the stigma of personal bankruptcyXXX 
The people that arrange it have to be qualified and licensedX  X
Will it be on my credit record?X  X
If so for how long?Until debt is repaid  3 – 10 years
How much do DebtBusters charge?R3,000 + 5% monthlyR1,5001% of the loanR20,000

Debt Counseling

DebtBusters offers debt counseling to clients at a fee. The main goal of this service is to help you make wiser decisions about transactions surrounding your debts. It is an offering they have for individuals in debt and individuals who own businesses in debt. With debt counseling, you will be given a path out of debts.

Guide to Debt Counselling with DebtBusters

The debt counselling process starts in debt and ends with a certificate of clearance that will see you gain a clear credit record. The steps involved are:

  1. You initiate a request for debt counselling with DebtBusters by calling them using the number 086 999 0606 or by filling in the callback form at the bottom of their page.
  2. A consultant finds out your debt situation and prescribes to you solutions that DebtBusters can offer you. After which, you’ll get a form that lists everything the process requires.
  3. The debt counsellor will use this form to evaluate your status. During which point, they also assess your credit status to ensure everything is included.
  4. If you are not too indebted, they will recommend debt management. Debt management is a part of their debt solutions which involves recommendations for your monthly budget and planning for debt repayment.
  5. If you are too indebted, they will inform your lenders, credit bureaus and the National Credit Regulator (NCR) that you are going through a debt review. This status was introduced by the National Credit Act in 2007 as part of the recovery process from huge debt. Your lender will send your debt status and information to DebtBusters.
  6. Information sourced from the lender will then be used to update the debt management system. The update will confirm that you are indeed over-indebted – a status that will be shared with your lender.
  7. Next, they will discuss your household budget with you and advise you on the parts you can save money on.
  8. DebtBusters will then send you an agreed budget that lists your lenders as well as the amount available to them.
  9. The consultant will then tell you how much you should pay when to do it and where to pay it to. You will pay to an NCR registered Payment Distribution Agency, which will then pay the lenders individually.
  10. After this, the debt counsellor will calculate the amount you can pay each lender individually from your budget.
  11. Their negotiators will then share a proposal with your lenders showing the amount you can pay to them and the repayment plans for each of them.
  12. In case they don’t accept, the counsellor will advise you on the legal action you can take. In this case, the magistrate will make the final decision.
  13. You will then pay the agreed amount each month till you are debt free. At which point, DebtBusters will issue you with a clearance certificate. This is shared with your lenders, credit bureaus and the NCR. After 5 business days, you will have a clear credit record.

Advantages of Debt Counselling with DebtBusters

  • They are experts in debt management. They will do a thorough evaluation of your finances and give you expert advice.
  • Debt counselling will help set up a money saving budget.
  • It reduces the indictments you get.
  • It will help you avoid bankruptcy.
  • DebtBusters will offer you a way out of the turmoil of being over-indebted. At which point most people feel hopeless. They will give you a complete route to total debt freedom.

Charges for Debt Counselling

  • An agreed monthly payment during the time you are undergoing debt review.

Debt Consolidation

Debt consolidation means combining all your outstanding loans into one single loan. Your new loan means one payment, but it does not always mean a higher payment. Sometimes a new payment is less than the previous payment but takes longer to pay off completely.

Debt consolidation can be done using a secured loan or an unsecured loan. Secured loans use assets as collateral. Unsecured loans are done using your credit score.

DebtBusters has three debt consolidation offers:

  1. Home loan debt: in which case the new loan is added to your mortgage.
  2. Personal loan: in which case the new loan is a personal loan against you. You have a higher chance of getting this loan if you have a good credit score.
  3. Secured loan: in which case the new loan is taken against an asset you own. This can be a car, a house or even a bond. These loans are given at 85% of the value of the asset. And if you use a bond, the payment will not exceed 30% of your gross monthly income.

Charges on Debt Consolidation by DebtBusters

  • For every debt consolidation loan given, you will be charged R1,250 + VAT.
  • For every bond registered, you will be charged 1% of the registered amount + VAT.
  • For all successful transactions, a minimum charge of R5,000 + VAT.

Requirements for Debt Consolidation with Debtbusters

Application for a personal loan:

  • Your bank statement for the last 3 months was prepared and stamped at the bank.
  • Your payslip for the latest 3 months that you submit with contact details for someone in Human Resources at your workplace.
  • Copy of your green bar-coded identity document
  • Any proof that you reside in South Africa
  • Details of your next of kin
  • Settlement letters for the loan accounts you want to be settled. They should not be more than 5.
  • A clear credit record.
  • No overdue loan payments.

Requirements for an asset secured loan:

  • Copy of your green bar-coded identity document.
  • Your bank statement for the last 3 months was prepared and stamped at the walk in bank.
  • Your payslip for the latest 3 months that you submit with contact details for someone in Human Resources at your workplace.
  • Proof of ownership of the asset
  • A clear credit record.
  • No overdue loan payments.

Note: In case you share an asset with your spouse, these requirements will also apply to the spouse.

Requirements for bond secured loans

  • An application to BondBusters
  • Copy of your green bar-coded identity document.
  • Your bank statement for the last 3 months was prepared and stamped at the walk in bank.
  • Your payslip for the latest 3 months that you submit with contact details for someone in Human Resources at your workplace.
  • Copies of the bond statement for the last 6 months. These should not be from the internet. They should also be sourced from a walk-in.
  • Copies of your latest rates statement

Note: In case you share an asset with your spouse, these requirements will also apply to the spouse.

Additional requirements for Business Owners:

  • Copy of your personal bank statement for the last 3 months prepared and stamped at the walk in bank.
  • Copy of financial statements from your business for the latest 2 years.
  • Copy of the latest management accounts prepared by your accountant.
  • Copy of the bank statements for your business for the last 6 months.
  • Copy of a letter from your accountant confirming the gross monthly income from your business.

Advantages of Debt Consolidation with DebtBusters

  • A good debt consolidation strategy can end up in lower interest payments.
  • Debt consolidation minimizes the stress from debt payment because there is only one debt to worry about.
  • You may end up completely paying off your debt sooner.

Disadvantages of Debt Consolidation

  • In cases where debt consolidation is done using assets as security, there is a new risk of losing those assets.
  • The new consolidated loan can add extra length to a mortgage payment, resulting in added years of payments.
  • You need to ensure you don’t miss the one payment you now have after debt consolidation.
  • If you don’t have an experienced debt manager, you will not get free of your debt. Debt consolidation does not tackle the reason you were indebted in the first place.

About DebtBusters

DebtBusters are debt counsellors registered by the National Credit Regulator and licenced to give debt counselling under the National Credit Act 34 of 2005.

Apart from debt counselling and debt consolidation, DebtBusters also offer other solutions, including:

  • Debt management,
  • Debt Settlement,
  • Credit Monitoring,
  • Insurance, and
  • Debt solutions for a business owner’s employees

For more information, email info@debtbusters.co.za

In Conclusion

DebtBusters offer a way out to anyone whose finances are tied up in the extreme. They could be personal or business finances. Their offers give you a way out through a process involving thorough financial management and expert debt repayment advice. Even if you are not over-indebted, their offers will help you manage your existing debts, or those of your business, more effectively.

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