Frequently Asked Questions.

Financial literacy is the ability to understand and effectively use financial skills, including budgeting, saving, investing, and managing debt.

A budget helps you plan how to spend your money, avoid debt, and work towards financial goals like saving, paying off loans, or investing.

List all sources of income, subtract your fixed expenses (like rent and transport), then allocate funds to savings, debt repayment, and essentials. Track your spending monthly.

Use the 50/30/20 rule:

• 50% for needs (rent, groceries)
• 30% for wants (clothing, entertainment)
• 20% for savings and debt repayments

Your payslip shows your earnings, deductions, and benefits. It's important to check for:

• Correct basic salary
• All deductions listed clearly
• Leave balances (in some cases)

A credit score is a number between 0 and 999 used by lenders to determine your creditworthiness. The higher the score, the better.

You can request one free credit report per year from credit bureaus like TransUnion, Experian, or Compuscan.

Live within your means, avoid unnecessary credit, pay your bills on time, and have an emergency fund.

• Track your spending
• Avoid payday loans due to high fees
• Prioritize paying off high-interest debt first
• Seek help from debt counsellors if overwhelmed

Your creditors may:

• Hand your account to collections
• Charge legal fees and interest
• Apply for garnishee orders
• Repossess assets (e.g., vehicles or appliances)

It's a new loan taken to settle multiple existing debts. It simplifies payments but can cost more in the long term if interest is high.

Yes. Many creditors are open to:

• Lower monthly repayments
• Temporary payment holidays
• Interest rate reductions

Get all agreements in writing.

Compound interest is the interest you earn on both the money you save and the interest that money earns over time — it helps your savings grow faster.

As early as possible. The sooner you start, the more time your money has to grow.

Options include:

• Unit trusts
• Government Retail Bonds
• Fixed deposits
• Money market funds

A bank account provides a safe place to keep money, helps track your spending, and is often required for employment or credit applications.

• A savings account offers flexibility to deposit and withdraw anytime.
• A fixed deposit locks your money for a set period at a higher interest rate.

Aim to save at least 10% of your income, more if possible. Start small and increase as your income grows.

• Gross pay is your full salary before deductions (e.g., tax, UIF, pension).
• Net pay (take-home pay) is what you actually receive after deductions.

• PAYE (Pay As You Earn) – income tax
• UIF (Unemployment Insurance Fund) – 1% of salary
• Pension or Provident Fund (if your employer offers one)
• Medical aid or union fees (optional)

Yes, if you're unemployed, on maternity leave, or unable to work due to illness. Claim via the Department of Labour (www.labour.gov.za).

Even small savings (R50–R200/month) help you:

• Handle emergencies
• Avoid debt
• Build financial independence

• Don't share PINs or personal info
• Be cautious with "get-rich-quick" schemes
• Always verify financial service providers with the FSCA (Financial Sector Conduct Authority)

Debt remediation refers to any process or plan aimed at helping a person regain control of their finances and repay outstanding debts. This includes budgeting, debt counselling, payment negotiations, debt consolidation, or legal remedies.

• Debt remediation is a broader term that can include informal or formal methods.
• Debt review is a formal legal process under the National Credit Act (NCA) specifically for over-indebted consumers.

You have the right to:

• Request a payment arrangement
• Apply for Debt Review
• Be protected from harassment by credit providers
• Receive proper notices before legal action is taken

A garnishee order is a court order instructing your employer to deduct money from your salary to pay a creditor.

You can challenge or reduce it through the court or a debt counsellor if it's unfair or unaffordable.

It's a document issued by your debt counsellor confirming all your debts have been settled under debt review. It helps remove the "under debt review" flag from your credit record.

Once your debts are settled and paid in full, and you have a clearance certificate, your credit profile can start improving within 30 to 90 days.

Debt Review is a legal process introduced by the National Credit Act (NCA) in South Africa to help over-indebted consumers repay their debts through a structured repayment plan managed by a registered debt counsellor.

Anyone who is over-indebted — meaning their expenses exceed their income and they can't meet monthly credit obligations — may qualify after an assessment by a registered debt counsellor.

It depends on your debt amount and repayment capacity. On average, it takes 3 to 5 years, but it could be shorter or longer.

Yes, but interest rates may be reduced significantly as part of the negotiation with creditors.

No. You are legally not allowed to incur new credit while under Debt Review. Your credit profile is flagged by the credit bureaus.

Yes, once you're under Debt Review and the court order is in place, creditors cannot proceed with legal action, provided you stick to the repayment plan.

Your credit record will show that you are under Debt Review, which limits access to new credit. However, it can improve your score over time once debts are settled.

Yes, but only once all debts (except possibly a home loan) are fully paid up, or if a court rescinds the order. You'll need a clearance certificate from your debt counsellor.

Once you've received your Form 19 Clearance Certificate, your counsellor will inform the credit bureaus to remove the flag.

Yes. It is regulated by the National Credit Regulator (NCR) under the National Credit Act (NCA).

Visit the NCR website (www.ncr.org.za) and search the debt counsellor's registration number.

• SAICA Money101
• National Credit Regulator (NCR)
• FinMark Trust
• Old Mutual On The Money
• FNB/RMB Learn platform
• Public libraries and local community centres

The National Credit Regulator (NCR) – visit www.ncr.org.za to verify registrations or lodge complaints.