Debt Settlement


You can settle your debts right now – and benefit

If you are in debt, you may have heard the term “debt settlement” being proposed as an option to help you clear your debt quicker and avoid the ongoing interest and fee charges. If you are unfamiliar with the debt settlement process, you may be unsure as to how this works and how it can benefit you on your journey towards becoming debt-free.

Let us walk you through a few of the advantages.

What is debt settlement? 

This is a process offered by DebtBusters, who negotiates a settlement discount on the consumer’s behalf when this consumer comes into a lump sum of money and wishes to settle all or part of their outstanding debt. This is also beneficial for the creditor, who is guaranteed a settlement amount on the debt owed.

What are the advantages?

Opting for debt settlement has the following benefits:

  1. Reduces your debt: This process can help you pay less than the original amount owed. If you are already struggling to afford payments, this could be a financial game changer. The percentage of debt forgiven is often between 15-20 percent, but can be much higher based on circumstances and the amount owed.
  1. Preserves your credit score: Debt settlement is a far better option than having to declare bankruptcy, especially when it comes to your credit score. Missing payments will damage your score, but bankruptcy will completely obliterate it. Through debt settlement you will be able to repair your credit score sooner.
  1. Lowers the interest: If the amount owed is reduced, it will result in you paying less on interest and therefore you will save money. What’s important to note is that the interest that’s cut is often based on the amount owed, your payment history, and your financial circumstances. 
  1. Eliminates creditor harassment: If you have ever been in arrears with your debt, you may be familiar with incessant calls and even emails from your creditors – which often occurs at the most inopportune times.

 Settling your debt, however, means you are paid up and do not have to answer to creditors any longer. This will be a big weight lifted off your shoulders and will release you from enormous financial stress.

If you come into a lump sum of money and are interested in settling all or part of your accrued debt, contact DebtBusters today on 086 999 0606 or fill in the free call-back form on the DebtBusters website.


How does life look after debt counselling?

So, you’ve reached the end of the debt counselling journey – a fantastic achievement. Like many who have been part of the programme, you are probably wondering what’s next and how your life is going to change after the programme.

Here is what you should expect:

Once all the necessary paid up letters from your respective credit providers have been received, your debt counsellor will issue you with a clearance certificate which is also known as a Form 19. This certificate confirms that you have settled all your accounts listed under the debt counselling agreement and that all of your accounts are paid up – this excludes your home loan, which just needs to be up to date with payment.

Once all the paid up letters have been obtained, the clearance certificate must be issued within seven days of finishing the programme. The debt counsellor will ensure that the credit bureaus receive the certificate so that you are no longer flagged under debt counselling.

Can you apply for credit?

Since you have been rehabilitated, you can apply for credit as soon as the debt counsellor hands you your clearance certificate. Your status as someone who was under debt counselling will not have a negative impact on how the creditors perceive you. If anything, they will perceive you as a responsible consumer who realised that they were overindebted and acted accordingly.

It is highly advisable that you set up a realistic budget and draw up a financial plan before you attempt to take out any new credit. Your debt counsellor and/or a financial advisor will be happy to assist you with this budget as well as a sustainable financial plan for the future.

How will your credit score be affected?

Naturally, your credit score will be low after debt counselling. But you can rebuild it by ensuring that you pay your accounts on time. Creditors always look at your payment history when they are risk profiling you for credit. Make sure that service agreements such as DStv, Telkom accounts, and phone contracts are up to date.

After you have completed the debt counselling programme, pull up your credit report to see if it is updated. If not, immediately inform the bureau, so that they can correct any mistakes. Those mistakes could cost you your credit score.

Can you apply for debt counselling for a second time?

You can apply for debt counselling any time you feel over-indebted. However, the debt counsellor must also do an assessment to determine if you are indeed over-indebted.

DebtBusters has a trained team of consultants who will help you negotiate debt settlement discounts with your creditors. If you are struggling to pay your monthly instalments, do not hesitate to call us on 086 999 0606.


Why you should utilise our Debt Settlement Service

On occasion, you may find that you come into a lump sum of money and are not sure what to do with it… There may be a few good and sensible places to put a lump sum of money, such as putting it towards a savings account or investing it, but when you have a substantial amount of debt or are under debt counselling, putting the money towards settling all or part of your debt can be greatly beneficial.

Here is why:

You can get discounts on your debt
DebtBusters will negotiate with your credit providers in order to obtain the best possible discount on your debt. On average, DebtBusters saves clients 25% of their total settlement amount through the Debt Settlement service. This is a great way to save money, and settling your debt prematurely will also save you interest and fee costs in the long run.

DebtBusters offers a professional service
DebtBusters are debt experts and are therefore able to offer an expert service by facilitating the debt settlement process, ensuring it is fair. DebtBusters will also advise and prioritise which debt should be settled. As a client, you will receive a detailed breakdown of the settlements, discounts and the savings that were achieved.

Debt Settlement could be the best gift you give yourself
When you come into a lump sum of money, it may be tempting to spend the money or to spoil yourself, after all you do deserve it! But Debt Settlement could be the best gift you give yourself. You will be a few steps closer to debt freedom and complete peace of mind with your finances, and you will reduce your monthly repayment amount, saving yourself monthly interest and administration fees, as well as freeing up cash flow.

To discuss a Debt Settlement opportunity, contact us on or log in on your Smartcents client portal (


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