Should your employer know about your debt counselling status?

Many South African households continue to juggle significant debt.

DebtBusters’ Q3 2025 Debt Index shows that consumers are spending more on debt than they did nine years ago. For example, they have 48% less purchasing power as electricity costs are 165% higher, and the petrol price has gone up by 80%, while net incomes have increased by just 3%.

Of the consumers applying for debt counselling via DebtBusters, 95% have a personal loan and 57% a payday loan.

Although recent interest rate and petrol price reductions have helped consumers, their finances are still seriously strained, according to Benay Sager, executive head of DebtBusters.

This growing financial strain has led many to seek relief through debt counselling (also called debt review), a legal process designed to help overindebted individuals restructure their repayments and regain financial control.

However, as more South Africans turn to this option, a sensitive question arises: should you inform your employer about your debt counselling status?

Whether you're worried about stigma, job security, or transparency, this article explores employment rights, as well as the implications and responsibilities surrounding debt counselling employer disclosure.

Industry-specific requirements and exceptions

Most jobs don’t require you to tell your employer about your debt counselling or financial status. Employer credit checks in South Africa are only permitted where financial responsibility is a core part of the role. Even in these cases, employers must obtain your explicit written consent, prove job relevance, use only registered credit bureaus, and comply with the Protection of Personal Information Act (POPIA).

Financial services sector

Roles that involve managing money, providing investment advice, or making financial decisions may require background verification. The Financial Sector Conduct Authority (FSCA) ensures that key individuals in financial services meet “fit and proper” requirements in terms of the Financial Advisory and Intermediary Services (FAIS) Act. These focus on:

• Professional competence
• Honesty and integrity 
• Operational capability

Financial checks must be directly relevant to the role. Having debt or poor credit does not automatically disqualify you from employment.

Note that you can:

• Request details about what financial information is being checked and why
• Dispute inaccurate credit information
• Request specific reasons for being declined based on your financial history, if this occurs

Other sectors where financial checks may occur

Certain roles involve handling money, valuable assets, or access to sensitive financial information.

In limited circumstances, employers may conduct financial background checks – but only with your consent and where genuinely relevant to the job.

In these cases, credit or financial checks are allowed only with the individual’s explicit written consent and must be conducted through a credit bureau registered with the National Credit Regulator (NCR).

• Security services and cash handling

This applies to roles involving direct custody of cash or high-value assets (e.g., cash-in-transit personnel, security guards protecting financial assets, bank tellers) and positions where employees have unsupervised access to significant amounts of money.

The Private Security Industry Regulatory Authority (PSIRA) requires appropriate vetting for security personnel, and credit checks must still comply with POPIA and require written consent.

• Government positions requiring security clearances

Certain government and state-owned enterprise positions require security clearance vetting conducted by the State Security Agency (SSA). This applies to:

• • Senior management positions
  • Supply chain management roles
  • Positions involving classified information or critical infrastructure
  • Roles with access to sensitive state operations

The SSA’s vetting process, conducted under the Minimum Information Security Standards (MISS) framework, may include criminal record checks, employment and education verification, reference checks, and a financial background review (specifically in the case of high-security positions).

For positions requiring high-level clearance, financial circumstances may be reviewed not as a judgement of character, but to assess whether specific situations could create security vulnerabilities.

• Senior executive roles with financial oversight

Positions with significant fiduciary responsibilities, such as chief financial officers, financial directors, treasurers and roles with budget authority, and positions with signing authority over large financial transactions, will fall under scrutiny.

For regulated entities (banks, insurers, financial services providers), the FSCA’s fit and proper requirements apply. Additionally, the King IV Report on Corporate Governance recommends appropriate vetting for directors and senior executives.

Employers may conduct financial due diligence for senior roles based on the specific responsibilities, not as a general character assessment. The focus should be on:

• • Whether there are circumstances that could create conflicts of interest
  • Whether the candidate has the financial acumen required for the role
  • Compliance with regulatory requirements for specific positions
    
• Real estate and property management

In the real estate and property management sector, roles that involve directly handling client funds, rental deposits or trust accounts, signing authority over financial transactions, and the management of property portfolios or large budgets, will require oversight.

The Property Practitioners Regulatory Authority (PPRA) regulates the real estate sector and has a code of conduct emphasising ethical practice and financial accountability for practitioners.

Employers may conduct financial background checks for the abovementioned roles, but they must:

• • Obtain written consent under POPIA
  • Demonstrate specific job relevance
  • Conduct individual assessments

Not all real estate jobs require credit checks, particularly junior positions or roles with no direct financial responsibility.

Industries where disclosure of debt counselling status isn’t required

For most employment positions in South Africa, your credit history or debt review status is not relevant to your ability to perform the job and should not be requested by employers.

Credit checks should only occur where there is a clear, demonstrable connection between the role’s specific duties and financial responsibility. In most industries and positions, this connection does not exist. Unless your role entails working directly with finance in the following sectors, you should be exempt from financial vetting:

• Healthcare and medical services
• Education and training 
• Manufacturing and production
• Creative and media industries 

Employer credit check guidelines and limitations

Understanding your employment rights under POPIA, the National Credit Act (NCA), and the Employment Equity Act (EEA) helps you recognise when credit checks are lawful, and when they may constitute unfair discrimination or privacy violations.

Legal requirements for credit checks

• Written consent is mandatory. Employers must obtain your explicit, informed, written consent before accessing your credit information. Consent can’t be implied or inferred from general application forms. You can refuse or withdraw consent if you believe the check is not relevant to the role.
• Job relevance is a legal requirement. Paragraph 7.3.32 of the EEA states that “an employer should only conduct integrity checks, such as verifying the qualifications of an applicant, contacting credit references and investigating whether the applicant has a criminal record, if this is relevant to the requirements of the job”. 
• Timeline and process requirements. In South Africa, credit check results or enquiry records should be kept only as long as needed for the recruitment decision, or any legal claim that could arise from this, but not more than one year for credit enquiries, in line with NCA regulation 17 and POPIA’s requirement to destroy or de-identify information once it is no longer required.

What employers can and cannot do

• Permissible reasons for credit checks. In South Africa, employers may conduct credit checks only when the job genuinely requires financial integrity or involves handling money, and only with the applicant’s informed consent. 
• Prohibited discriminatory practices. Using credit data for roles where it’s irrelevant can amount to unfair discrimination under the EEA, especially if applied inconsistently.
• Documentation requirements. Employers must obtain written consent and indicate the purpose for which the information is collected and processed, or it will not be lawful. They must retain the signed consent form and the stated purpose in the recruitment file, along with the applicant’s job description, which clearly indicates the job requirements.  
• Appeal processes for applicants. Applicants have the right to access and dispute credit information with credit bureaus, and correct or explain any adverse information that influences a hiring decision. If a candidate believes the credit check was unfairly applied or discriminatory, they can refer the dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA) or Labour Court. 

When and how to tell your employer about your debt counselling status

Although South African law doesn’t require employees to disclose their debt counselling status to their employer, it can be an advantage to let your employer know.

However, the benefits of transparency should be weighed against your right to privacy in the workplace. Let’s examine the pros and cons.

Proactive disclosure benefits

• Builds trust through transparency. Disclosing that you’re under debt counselling can show you’re honest and accountable. It may also prevent your employer from becoming aware of your financial challenges through other means, for example, if a garnishee order is issued on your salary. 
• Demonstrates financial responsibility. Making the disclosure voluntarily can help frame the conversation positively, showing you’ve taken lawful, structured steps to resolve your debt problems. It shows that you’re self-disciplined and engaging in a regulated process to ensure sustainable financial recovery. 
• Reduces workplace stress. Financial stress is a leading non-medical cause of reduced productivity at work, and debt distress can lead to anxiety and absenteeism. Transparent communication with your manager or HR department can help pre-empt misunderstandings – for example, if payroll deductions or court-ordered repayments affect your finances. In addition, being under debt counselling may greatly alleviate your financial worries and make you more productive at work – a positive for both you and your employer.
• May facilitate access to employee assistance programmes. Many employers want to help employees who are struggling with debt, and larger companies have employee assistance programmes that provide support. Telling your employer what you’re going through may help you, whether you’re interested in financial wellness or confidential counselling.

Timing considerations

Think carefully about timing if you do decide to disclose your debt counselling status. There could be implications at each stage of your employment journey. 

• During the job application process. It’s unwise to disclose your debt counselling status during the initial application phase, unless you’re applying for a role involving financial responsibility. At this stage, employers don’t yet know you, so revealing your financial status could lead to bias. If an application form includes questions about your financial status or credit history, assess whether the question is legally justified based on the role’s requirements. 
• After receiving a job offer. Once an offer has been made, you have greater leverage, and the employer has already shown confidence in your capabilities. Consider disclosure at this stage if: 
  • Your role involves financial responsibilities, and a credit check may be conducted as part of your pre-employment screening
  • You are expecting a payroll deduction relating to your debt counselling arrangements
  • You want to establish trust from the start of your employment
  • You want to avoid potential misunderstandings about your financial commitments
• When financial stress starts affecting your performance. If you’re already employed and your financial situation begins affecting your work performance, concentration, or attendance, it’s a good idea to have a confidential chat with your direct supervisor or HR department.

Disclosure is beneficial if:

• • You’re absent from work more often due to stress-related illness
  • You struggle to focus on tasks
  • You need flexibility for financial counselling appointments
  • Garnishee orders or legal proceedings will become visible to payroll

• During performance reviews. These meetings offer a structured, confidential forum to discuss any factors that affect your work. If financial stress is hurting your performance, this may be a good opportunity to mention that you’re under debt counselling.  

How to frame the conversation

When you decide to disclose your debt counselling status to your employer or prospective employer, the manner and tone of how you do it matters.

You can use the following approach with your supervisor if you’re an existing employee.

“Thank you for taking the time to meet with me. I’d like to share something confidential regarding my financial situation – I’m currently under debt counselling through a registered debt counsellor. I’ve taken this step proactively to manage my obligations responsibly, and I believe being transparent helps avoid surprises (e.g., deductions, garnishee orders). I’m fully committed to my work and want to ensure my performance stays on track. If possible, I seek your discretion and, if available, support via the company’s employee assistance programmes or financial wellness services.”

If you’ve accepted a job offer but haven’t yet started work, you can try the following approach:

“I appreciate the offer and the trust you have placed in me. Before we finalise the contract, there is one matter I’d like to raise: I am currently under debt counselling, but I have a structured repayment plan in place and can provide documentation. I believe this will not affect my performance, but I prefer to be transparent rather than have this emerge later via credit verifications or salary deductions.”

You can also use your quarterly performance review to let your manager know you’re under debt counselling:

“During the past few months, I’ve experienced financial pressures that have, at times, affected my focus. To manage this better, I have entered debt counselling. I wanted to share this with you so you’re aware and to reassure you that it is under control. I am committed to managing my responsibilities and welcome any flexibility for necessary appointments or communications with HR.”

Keep your disclosure professional 

If you decide to inform your company of your debt counselling status, it’s essential to be prepared and professionally set out any necessary facts you want to share.

Be factual and focus on solutions, indicating what progress has been made to date and what lessons you’ve learnt. Also, set out a schedule for follow-ups, so your employer knows you’re on track.

Documented follow-ups are consistent with guidance from Schedule 8 of the Labour Relations Act, which encourages ongoing communication and early intervention where personal circumstances may affect job performance.

There is no need to share creditor names or amounts owed, since section 68 of the NCA reinforces the confidentiality of consumer credit information.

Framing the conversation around progress and accountability creates a record of your good faith and aligns with the EEA, which allows for fair work-related discussions.

Do you need to provide documentation? 

There is generally no legal obligation to provide any specific documents to your employer unless you work in a highly regulated sector, such as financial services, which specifically mandates disclosure for risk or compliance reasons.

If you choose to inform your employer, it’s your decision how much information to share. If you wish, you can provide a letter from your registered debt counsellor or evidence that you are compliant with your debt repayment plan, such as a compliance report or payment statements. However, this isn’t legally required of you.

Job searching while under debt counselling 

Being under debt counselling shouldn’t stop you from looking for a new job or building your career.

South African law protects your right to fair employment, even if you’re repaying your debts through a regulated process.

With the right preparation, you can show prospective employers you’re capable and responsible.

Preparation strategies

Before you start applying for new jobs, here are some preparation strategies to adopt:

• Check your credit report. Obtain a copy of your credit report from one of the main registered credit bureaus in South Africa, i.e. Experian, TransUnion, VeriCred Credit Bureau (VCCB), and Xpert Decision Systems (XDS). You’re entitled to one free report per year. You can also access your credit report via DebtBusters. Review your report for any errors and ask for corrections if needed.
• Strengthen your professional references. Good references can make a big difference. Ask former supervisors, colleagues, or clients who can speak to your work ethic and reliability. Under the EEA, employers should assess your ability to do the job – not your financial status. Strong references help remind them of that.
• Keep your skills up to date. Debt counselling doesn’t stop you from investing in yourself. Look for free or affordable ways to learn, such as Sector Education and Training Authorities (SETAs), the Employment Services of South Africa (ESSA), a platform run by the Department of Employment, SAYouth.mobi, and online platforms like Coursera and Udemy. Updating your certifications or completing short courses shows you’re proactive and committed to growth.
• Build your network. Networking is one of the best ways to find job leads. Join free webinars, attend local career events, or participate in LinkedIn groups in your field. Connections help you stand out for your skills, not your finances. 

Interview best practices

Be prepared for your interview so you can be transparent with your employer, but only as much as you need to be.

• Be honest, but keep it professional. If an employer legally conducts a credit check and asks about it, be open but brief. Explain that you entered debt counselling to take control of your finances responsibly. Avoid unnecessary details – your goal is to show accountability, not to justify your situation.
• Highlight your problem-solving skills. Debt counselling requires planning and discipline. You can use that to your advantage in interviews. Explain how you recognised a challenge, followed a structured process, and achieved results – just as you would with a project at work.
• Show your commitment to improvement. Employers respect people who learn from experience. Mention how managing your finances through debt counselling has taught you to plan better, prioritise, and budget – all qualities that will help you perform better at work.
• Share context, not your full story. You don’t need to reveal the amount of debt you owe or who your creditors are, as the NCA and POPIA protect your privacy. Keep your answers short and focused on what you’ve learnt and how it’s made you more reliable.

Red flags to watch for

Be mindful of your rights when being interviewed, and ensure the following red flags don’t pop up.

• Unlawful interview questions. Employers are not allowed to ask about your debt counselling status unless it’s directly relevant to the job – for example, in banking or high-level financial roles. Questions like “Do you have debt problems?” are inappropriate unless legally justified.
• Signs of discrimination. It is difficult to prove that an employer has failed to hire you due to your financial situation, and you won’t be able to lodge a dispute with the Commission for Conciliation, Mediation and Arbitration (CCMA) as you’re not an existing employee. However, you may have grounds for complaint if discrimination on other grounds applies (such as race or religion). 
• Unreasonable credit check requirements. Under Regulation 7.3.32 of the Employment Equity Regulations, credit checks are allowed only when the job genuinely requires financial responsibility. If a potential employer insists on running a credit check for a role that has nothing to do with money management, you have the right to say no.
• Pressure to disclose private details. Employers can only request financial information if it's relevant to the job (like positions handling money or requiring financial trust). Under POPIA and the NCA, they must get your written consent before conducting credit checks. If you're asked for financial information for a job that doesn't involve handling finances, or if you feel pressured to share more than required, this could be a POPIA violation.

Debt counselling as a professional asset 

Debt counselling isn’t a weakness – it’s a sign of maturity and accountability. It demonstrates that you’ve taken control of your finances through a lawful, structured process. Many employers view it as a positive step towards long-term stability and responsibility.

Demonstrating financial responsibility

How does debt counselling demonstrate financial responsibility?

• You acted. Entering debt counselling is a proactive step – it shows you identified a problem and sought expert help through a process regulated by the NCA. 
• You follow the law. Debt counselling is fully protected by South African law. By following this process, you’re showing that you respect rules and compliance, which is a quality every employer values.
• You plan for the future. Sticking to a repayment plan requires discipline and forward thinking. You can highlight this as evidence of your ability to plan ahead and stay committed – key traits in any job.
• You manage stress effectively. Balancing debt counselling, work, and life takes emotional control and focus. Employers increasingly recognise resilience and emotional intelligence as important workplace skills.

Professional growth opportunities

Believe it or not, debt counselling can prepare you for career growth. Sticking with debt counselling and becoming debt free helps you in ways you probably haven’t anticipated. These include:

• Improved financial literacy. Debt counselling teaches you about budgeting, interest rates, and repayment priorities. This knowledge can help you manage company budgets or team resources more effectively.
• Better budgeting and planning. Learning to manage your money with care shows attention to detail and resourcefulness – the same skills needed to manage projects or business operations. 
• Experience under pressure. Working through financial challenges shows you can stay calm and focused in stressful situations – an asset in any workplace.
• Personal resilience. Debt counselling builds resilience and self-discipline. These qualities make you more dependable, empathetic, and better equipped to handle workplace challenges. 

Let DebtBusters help you bust debt for good

Debt counselling is a responsible step towards debt freedom – and thankfully, attitudes around debt counselling and financial wellbeing are changing for the better.

• Changing perceptions of debt counselling. South Africans from all income groups are entering debt counselling to take control of their finances – not because they’ve failed, but because they want a structured recovery plan. Employers are starting to see this as a responsible move.
• The rise of mental health and financial wellbeing at work. Workplaces are becoming more aware of how financial stress affects productivity – and financial wellbeing programmes are now a routine part of mental health support. Being open about debt counselling can help you access these resources in your organisation. 
• Supportive legal frameworks. Debt counselling is a legal process that employers should respect. It provides a structured pathway to dealing with unmanageable debt. 

If you’re under debt counselling and applying for jobs, remember:

• You have rights under the NCA, EEA, and PO
• You don’t have to disclose your debt counselling status unless it’s legally required

DebtBusters can help you understand your debt counselling status and support you in managing your finances responsibly while you focus on your career.

Note: DebtBusters is registered with the National Credit Regulator to provide debt counselling services, not legal or employment advice.