Does your employer have a right to know that you are under debt counselling?

10 June 2019

Keeping your finances private from your employer is fair, but what if you are struggling to meet your debt obligations and you have subsequently signed up for debt counselling? Do they have a right to know?

While you may not appreciate the answer, your employer needs to be made aware of your situation.

 When seeking new employment opportunities, the potential employer may request your permission to conduct a credit check. This is often a simple routine assessment. Due to a lack of understanding, previously employers were hesitant to employ people who were struggling with debt and those under debt counselling. In recent times, the drive to increase transparency around the process has resulted in it no longer being seen as a basis for discrimination, and therefore should not impact your current or future employment opportunities.

Keep in mind though, that every industry is different. When applying for a job in the financial sector, it is likely that you will be expected to have a clear credit record, and being under debt counselling may hinder your application. If the role expects you to effectively manage finances but you are under debt counselling, your level of competence may come into question.

Also, personal financial stress could have an impact on your ability to fulfil your responsibilities in the workplace. The mounting pressure of incessant creditor calls, judgements or payment default notices can only be avoided for so long, and once reality strikes, you may become vulnerable to mental or even physical health-related issues. It is, therefore, no surprise that employers are concerned about the impact on productivity and work attendance.

Debt Counselling could be the stress-relief process you need

Signing up for debt counselling opens you up to a realm of benefits that far extend the short-term setback of securing a job. The process alleviates the stress associated with debt by taking care of your creditors, paying them an instalment you can afford, and liaising with them directly – freeing you up to live life.

At DebtBusters, your situation is strictly confidential and treated with the utmost care. We will never take it upon ourselves to inform an employer about your debt status, however, we can provide you with a letter stating that you are under debt counselling, and inform your employer about the process upon your request. Contact us via the FREE call-back form to see if you qualify for debt counselling, and in the process, we’ll tell you how we can make the process easier for you.

Remember, opening up about debt counselling provides you with the opportunity to prove your dedication in taking charge of your debt situation. Simultaneously, it showcases debt counselling as the safe and responsible process it is, because your peace of mind and commitment will extend into your work – and it will show.