RD Debt Counselling is a professional and reliable debt counselling firm in Benoni, Gauteng. We help you become debt free in the shortest possible time.

Lay Buy, what are your legal rights and what to watch out for

There is a new method of lay buy options available – now you can get your goods after you make your first payment.

When done right, buying something on lay-buy is a huge win for consumers. No credit checks are necessary because the shop gets to hold on to the goods until they are totally paid off.

Lay-buys are lovely – but only if done legally

There are still some companies – mostly smallish independent businesses who are still doing lay-bys in a very unfriendly way.

Lay-buy allows you to choose an item – a pair of shoes, for example – and pay them off every month,  with no interest added.

Lay buys are governed by the Consumer Protection Act (CPA)

But, we often see that stores have their own terms and conditions and these don’t agree with the Consumer Protection Act.

The biggest terms and condition is that there is no option for a refund – if you decide after paying for 2 months that you don’t want the item and you want your money back, the store owner might tell you to choose something else in-store instead.

According to the CPA, you can cancel a lay-buy at any time, for no particular reason, and you must be refunded all payments you’ve made up to that point, minus 1% of the retail price as a cancellation penalty.

For example, if you purchased a suit and it cost R2 000, the lay-buy cancellation penalty should be only R20.

More importantly, the stores must refund you – they can’t issue a credit note instead, locking you into buying with them again.

Wendy Knowler, the famous consumer journalist, had a complaint about someone who paid R20 000 in lay buy on his furniture and when he went to collect his furniture, the company said there is no stock available and he must choose something else instead. When the customer said no, he’d rather have a refund, the company said their policy is no refunds or exchanges. Thankfully this client got in touch with Wendy because he got all his money back!

Companies can’t make up their own terms and conditions that are in conflict with the Consumer Protection Act.

When you buy something on lay-buy, always make sure  that you have a copy of anything you sign!

READ MORE: Everything you need to know about lay-buy


PayJustNow is a new offer in the market. It is a combination of lay buy and credit agreement where they dodge the credit agreement requirements initially, but if you default, you fall into a credit agreement.

Originally with lay buy, you only get your goods once all moneys have been paid which is normally 3-6 months later, but PayJustNow allows you to pay in three instalments with the difference being that you can take your goods after the first instalment. And if you pay everything on time there is no interest.

For example, if you want to buy a suit for R2 100, you only pay R700, and you can take the suit with you. The two months after that, you will only pay R700 per month and the suit will be yours.

PayJustNow has already signed with Cape Union Mart and Poetry.

A great benefit of PayJustNow is that they reward good behaviour!

First time buyers can lay-buy only 1 item.

When you prove yourself, you can start buying more and more goods.

I do like the PayJustNow option. The only problem is if you miss payments, then you are effectively into a credit agreement because you have already taken the goods.

On lay buy, if you decide after 2 months that you can’t pay anymore, you can ask for a refund and give them 1% and you have your money back

Another good thing is that they promote responsible purchases by having you make only 3 payments, and allowing you to take the goods after only one payment.

This is great, because they are rewarding their customers who pay on time every time.

In conclusion, lay buy is still a good option, where you can save interest and have no debt, but as with all things when you are handing over money – be careful and always get a copy of what you sign.

If you need to talk to a debt counsellor about anything, contact RD Debt Counselling. We are award-winning debt counsellors based in Benoni, Gauteng.

Wendy Knowler shares her top 6 tips for getting the most out of lay-bys here.

Arrears on your car – what are your rights when you are behind on your car payments

Arrears on your car – what are your rights when you are behind on your car payments

If you have had a financial hiccup and you have arrears on your car, what are your rights?

We’re sure that most people have missed car payments at some stage, but when your car is in arrears, this is when it gets a bit more serious.

When this happens, the bank will start to send you letters, and the collections department will phone to know when they are going to get paid.

What will happen when you are behind on your car payments?

Imagine this: you are 2 months in arrears on your car payments and all of a sudden you get a phone call from a collections agency or the bank themselves and the person on the other side of the line tells you that you must either catch up the arrears by Friday or you must give back your car.

What are your legal rights in this situation?

The first and most important thing to remember is that you do not have to give your car to anyone except the Sheriff when there is a court order to collect your car. Remember, the Sherrif must to show you that court order.


If there is no court order yet and all you’ve received is a phone call, you have three options you can consider:

  1. If there has been a mistake and the bank hasn’t picked up your payment, or something like that, then refuse to give them your car, but get the problem sorted out as soon as possible.
  2. If it’s not a mistake at the bank, but you have enough money coming through in the next few weeks to catch up the arrears on your car, then you can refuse to give up your car, and catch up the arrears as soon as possible to ensure no further problems.
  3. This is the most serious option. If you are 2 months in arrears (for example) and you are not going to be able to catch up, there are 2 things that you can do. If you want to keep your car and you are earning money every month, go see a debt counsellor. The advantage of seeing a debt counsellor in your area is that you don’t have to catch up the arrears, and you can pay less than your instalment and keep your car. But, you still have to pay every month after that, otherwise, you can still lose the car. The second thing is if you are not going to be able to afford the car anymore for whatever reason, and the best option is to give it back.

Don’t forget to get quotes when your car payment is in arrears!

If you are planning to give back your car and they have phoned you to ask when they can collect the car, take it to a few places that buy cars. You can get quotes from places like we buy cars and get three quotes for someone to buy your car and get them in writing. Then contact the bank and tell them what quotes you have and do they want to take the car, or will they allow you to sell it at a higher price.

If the bank then takes the car they cannot sell it for less than the quotes that you got (because when they take the car they put it on an auction and they sell it for what they can get), you don’t want to be the one that gets the lowest price because you are protected by the quotes that you got.

The sad part is, if you owe R200 000 on your car and they sell it for R120 000, then you still owe them R80 000 for a car you don’t have, so if you can save R20 000 or R30 000 by getting three quotes beforehand it was a day well spent riding around getting quotes.

So if you are in an arrears situation with your car, remember that you don’t have to give your car to anyone except the Sheriff. And if you want to keep your car but can’t afford the arrears, then speak to a debt counsellor.

If you need debt assistance or a free debt review, contact RD Debt Counselling on 011 421 2918.

Experian data breach – What should you do RD Debt Counselling deb counsellors in Johannesburg

Experian data breach – What should you do to keep your information safe

About 4 months ago Experian gave data to someone who was not authorised to receive it.

This included the information of 24 million South African personally and about 800 000 businesses.

It took Experian about 2 months to discover the mistake. Once they discovered the mistake, the business said that it wasn’t too much of a risk, as most of the information like ID numbers addresses, work info, telephone numbers and home address etc. could easily be obtained in the market.  Even the banks were not too worried.

That was a few weeks ago.

Now it appears that 24 000 bank account details of businesses were in the data, and to make us all more worried, Pansy Tlakula, Chairperson of the Information Regulator says they are investigating if more bank account details have been compromised.

The information has been confirmed to have left the country as it was transferred on a Swiss data transfer site by a “Russian person”.

The Sunday Times reported that this could affect up to 90% of the adult working population.

What to do about the Experian data breach

For your own safety

Change all your passwords. Not only your banking log-ins, but social media passwords as well as many of them are used to log into e-commerce websites.  There have been a number of reports of people receiving SMS’s from retailers about opening new accounts.

Never give:

  • bank account numbers
  • Online Banking username and/or password
  • One Time PIN (OTP) to anyone.

If you think you have been compromised

  • If you get strange phone calls, WhatsApp messages, emails, from people wanting information, BEWARE! These guys have half the info and they hope to get the rest.
  • I have had a couple of warnings this week on sites that are secure, to change my passwords as a database has been compromised
  • Get your free credit report check credit enquiries on your credit report and see if there are any you don’t recognise
  • Contact the bank immediately if you suspect your bank accounts or cards have been compromised. Banks have fraud hotlines.

If you are even one bit unsure, don’t give any info over the phone. Rather ask them to send you an email. Once they email you, you will have a phone number to phone and you can check on them.

Make sure you change all your passwords regularly in case another data breach happens.

If you aren’t sure about an email, just delete it. If it was very important, they will send it again.

This is not a one-time thing. Data on people is worth a lot of money, so protect yourself before it’s too late.

Bank payment holiday is over – what can you do now if you still aren’t receiving a full salary?

Bank payment holiday is over – what can you do now if you still aren’t receiving a full salary?

The bank says your payment holiday is over and that there are no more extensions. But… Your income is NOT back to normal. Which means you cannot pay everything!!! What do you do now that the bank payment holiday is over?

The banks are not back to normal, yet

Firstly, the banks are not back to “normal”.  They have a lot of people working from home, bad and slow connections to the huge banking computer systems and the resultant authentication problems.  Add to that tens of thousands of extra queries and you have a recipe for mistakes and oversights.

Make sure your bank has heard you, before you make any decisions.  Make sure they have received your communication.  They might have replied, but you didn’t get it.  They might have asked for previous payslips vs current payslips, send those to them when you justify a further extension.

The banks in general are taking a tougher position right now.  If they are not ignoring you and also not accommodating you, then you need to do something.

You need someone who knows how to work with the bank’s head office to help you.

At RD Debt Counselling, we have a number of clients in this position who have applied for debt review.  The banks are talking to us, albeit rather slowly, but we are getting payment plans worked out, and many people are managing on a reduced income if they are paying out less on their debt.

Advantages of Debt Review in this situation

  • You don’t have to catch up the arrears, these are worked into the repayment plan
  • You get a fixed interest rate – we generally get greatly reduced interest rates
  • Your monthly debt re-payment is reduced
  • As your income returns to normal, you can increase your payment and finish your debt review in a shorter time.
  • You are legally protected by a court order – if you pay your agreed, reduced amount every month, they cannot touch you.
  • Because of the reduced payment, you get some financial breathing space until your income returns to normal.
  • Once you have finished paying, your credit record returns to normal and you can replace cars and open new accounts (if you want to😊)

Disadvantages of debt review in this situation

  • You need to pay off all your debt (except your home loan) before you can exit debt review
  • If you agree to an amount that you can’t afford, and miss payments, then you are back where you started, and the banks can then take legal action.
  • The court order payment is not a negotiable or variable amount, it is exceedingly difficult to change the court order monthly payment once granted.
  • You cannot open any new accounts while in debt review

After carefully looking at the advantages and disadvantages of debt review, if you think debt counselling is the right option for you, then have a frank discussion with a registered, experienced debt counsellor.  Highlight all your fears, worries and ideas.

If you believe that the process and the person (Debt Counsellor) will work for you, then apply. Debt Counselling is a particularly good process for the right people. Contact us for a FREE debt review today.

Debt Counselling and the Covid-19 pandemic

Debt Counselling and the Covid-19 pandemic

Debt Counsellors are going to be playing a very important role in stabilising the fallout from the pandemic.

Those currently in Debt Counselling

Large financial institutions do not have the time or staff to deal with every case at an individual level, they make blanket policies which they then apply.  This is not ideal for the average person who has had a horrible financial shock.  To then be treated as a bank account number and struggle to get heard is even more stressful, after all, this is your financial future.

This is where Debt Counsellors come in.  Through the process the financial institutions are forced to listen, and if they still will not listen, then the courts will listen, that is their function.  They will decide who is correct and the courts are expected to be very lenient on people who have not used the situation to duck and dive, but have made payments where possible, and have documentation to prove loss of income, have budgets to show their living expenses and have communicated with their creditors through their Debt Counsellors during this time.

Should I apply for Debt Counselling now?

If you have had confirmation that your financial circumstances have changed, and you will not be able to fully pay all your debt going forward, then debt counselling can work for you.

If you were struggling to pay your debt before the pandemic, and now the situation is worse, then debt counselling can help you.

If you are looking for quick, temporary fix, then debt counselling is not for you.  A Debt Counsellor will work out a new reduced payment plan, which will pay back the debt in a reasonable period, and all debt except your home loan has to be paid back before you are removed from debt counselling.

The Debt Counselling (Debt review) process is a very good process for the right people and many, many people are back on their financial feet as a result.

It is also wise to talk to as many people as possible before you take the step, this will give you opinions from “keep away” to “best thing I ever did”.  Talk to debt counsellors and other experts as well, and decide if it is right for you.

We will happily discuss your situation and give advice.

How to keep your family safe during lockdown level 3

During the COVID-19 pandemic, we all need to do everything we can to keep our families safe. Aside from following the Government guidelines to protect your family, what are some of the other measures that we can all take?

It’s important to understand that even when people appear not to have symptoms of Coronavirus (COVID-19), they may still be carrying the virus.

how to keep your family safe during lockdown level 3

  • Pre-plan your activities. If you are leaving the safety of your home, know where you are going, plan your route and your time, look for times when less people are out to do shopping.
  • Work from home if you can. With the proper equipment and adjustments, many people can do most of their work from home. Speak to your employer if necessary.  Not all jobs can be done from home.
  • Avoid being face-to-face with people if they are not from your household
  • Avoid crowds
  • If you have to travel (for example, to work or school), think about how and when you travel
  • If you have to use public transport, you should try to avoid peak times.

Stay at home and stay safe

Whatsapp: Say “Hi” to 0600 123 456. For medical enquiries: National Institute for Communicable Diseases 0800 029 999.

Positive things we can take from the Covid-19 pandemic

Many who were planning their marketing strategies a few months ago, are looking with horror at what is left of their business’ today.

Many sectors have been completely flattened and will never return to what they were a few months ago.

Change is inevitable.  Dramatic change is a shock.

The Coronavirus has forced us to have a very hard introspective look at the world and our role in it.

Are we going to change and move forward, or constantly try to recreate what we had and be dissatisfied with anything different?

The world has been hit by similar viruses in the past, MERS and SARS were also from the same Coronavirus family as Covid-19 but were comparatively contained.

The New England Journal of medicine reported that Middle East respiratory syndrome (MERS) and severe acute respiratory syndrome (SARS), were spread much less efficiently and only by symptomatic people.

In fact, Covid-19 has already caused 10 times as many cases as SARS in a quarter of the time.

This is not new to the world, in 1918 about 50 million people died from Spanish Flu.

We, as South Africans, are faced with a choice of trying to manage the infection over time, allowing our health care system to cope, and getting our economy rolling again despite lockdowns and restrictions.

To spend billions of Rands on fighting the pandemic may seem to be a waste of money. But look at the economic pain caused by the virus already, travel, supply chains, oil prices, stock markets and a plethora of others have been disrupted.  If these billions are effective, it will be worth it.

Our natural instincts want everything to return to “normal”, the way things were before and which we believe we understand.

But, do we really want to go back to that?

Cities have become more and more gridlocked, it takes longer and longer to travel anywhere, pollution is increasing to unsustainable levels, our healthcare is at best ineffective, and our schools and tertiary institutions can operate more effectively.

The World Health organisation is already predicting much longer periods than any of us envisaged initially, we could remain in this social distancing, contact avoiding state for a few years to come, so this is the ideal time to make the changes.

  • It is cheaper to work from home, not only on the budget, but for the environment. Think of the advantages for childcare and child nurturing, it’s flexible, and in many cases equally or more effective, this will not suite the office networking expert, so it is something for everyone.  More teleworking will reduce pressure on our road and office infrastructure, be cheaper for both parties’ long term, and produce less pollutants.  The worlds cities had the cleanest air for decades during lockdown.  Future development must include clean technologies.
  • This is where part of socialism is probably right. There are some basic needs which not only help individuals, but society in general.  Healthcare systems need to be upgraded and available to all, and community medicine needs to be practised to deal with medical problems at the source and before they get too serious, this will also act as an early warning system.
  • Housing with enough space to grow our own basic fruit and vegetables, this will also improve food security. We need to move away from our constant increasing urbanisation and find ways to work and thrive away from major centres.
  • Connectivity which covers the entire country at acceptable speeds will allow people to largely remain at home and still work effectively and remove the overcrowded, unhealthy state of housing for many south Africans
  • A basic, unconditional income for everyone will assist the disadvantaged, and decrease the level of crime, malnutrition and desperation which is experienced at present. This is an advantage to society as much as for the individual.
  • Use local produce and services as much as possible. It keeps local money local and if you buy local products, you reduce the need for products to be transported which helps the environment and encourages entrepreneurs to remain locally and not move to the city
  • Schools and education systems have hardly been changed for hundreds of years; we all know that parrot fashion learning helps very few in the real world. Going to school every day for a fixed time is outdated, expensive and inefficient, especially when half the class is forced to be there and learns comparatively little.  A system of research based education, with the majority done remotely and certain assessments and progress checking done face to face would remove the need to go to an educational institution every day, it will teach children discipline, how to be self-starters and follow the type of education which interests and motivates them.

This all needs to take place with as little party political and business influence and interference as possible, to make it cheap and unaffected by elections, campaigning and profiteering.  These are but a few of changes that could be made to make our world, the only place where we live…  Better.

Why not take advantage now?

Stay home, be safe!

How to budget for South Africa's lockdown

How to budget for South Africa’s lockdown

We have entered a period unprecedented in our history in terms of the scale and the effect it is going to have on our world.

How we all react is going to determine our future as people.

An extract of what Bill Gates said in a long mail: “[I]t is reminding us how materialistic our society has become and how, when in times of difficulty, we remember that it is the essentials that we need (food, water, medicine) as opposed to the luxuries that we sometimes unnecessarily give value to”

There are also many practical things that we need to do.

We discuss a lockdown budget template in this blog post.  If you want an Excel version, contact us and we will mail it to you.

Lockdown budget

It is vital to do some financial planning for the lockdown period.  The best is to do a budget, with all your income and expenses.

I am aware and have spoken to a number of clients who are not sure how, or if, or when, they will be paid.  This makes budgeting very difficult.

We understand the difficult position businesses find themselves in.

We, however, appeal to all business owners to do your own lockdown business budget and try to give your staff a minimum guaranteed amount that you will pay as salary, and if events improve, then it could be more.

Assume you are getting a certain amount, then take off all your expenses.

Remember that things like petrol won’t be used much for 21 days, so adjust your budget and stick to it, particularly if you aren’t sure of your next income.


What should I pay while on lockdown?

In these tough times, I always say look after number one first, otherwise number one can’t look after anyone else.

Look after yourself and your family.

In the spirit of national survival, if you have extra, share with others, if you are an employer, support your employees.

Look after number one first – If you are getting a full salary, then pay all your accounts as per normal.

Maya Fischer French on Moneytalk on eNCA, made a very valid point.  Your child may not be at school, or nursery school or creche, but pay them your normal monthly amount, they are also under immense financial pressure and have staff to pay who are also on lockdown.

However, if your salary has been cut, and you have done your lockdown budget, and you can’t afford to pay your debt, your rent, your insurance and policies or part thereof, then you need to act now, and do not just ignore the problem until it bites you.

If you are not going to be able to pay anyone, then let them know.  Send a mail to the bank.  Do get a letter from work which outlines what and how they will pay you.  Get a copy of a bank statement as proof of what you got. Have recent payslips to prove what you were earning.

Stop your debit orders ahead of time so as not to incur the severe penalties for bounced debit orders.  If you can only pay some of your accounts decide which are the most important to you, for me, it’s always house then car, then the rest.

Start discussions with your landlord immediately.

Insurance and policies – contact your broker or the institution directly and find out what mechanisms they have in place.  You don’t want to suddenly find, when you claim, that you are/were not covered.

Here are some others you may also have to negotiate with:

  • vehicle tracking
  • phone accounts
  • child maintenance
  • medical aid
  • the security company
  • pool service
  • garden service.

I think that while the lockdown is in progress many mechanisms will be put in place, they all have conditions, so don’t assume you are going to get some form of subsidy.  Some of the banks have put in payment holidays for small business, investigate those.  Try to survive on your own without subsidies.  If you do qualify for an extension of periods, I don’t expect interest moratoria.

The subsidy cake is only so big, the more people that want a piece means the smaller the piece that everyone gets, so if you don’t need, don’t apply.

Should I apply for debt review while the lockdown is in progress?

  • If you are genuinely overindebted, not just short paid temporarily then yes.
  • If you are threatened by your creditors, then yes.
  • If you are just panicky in this uncertain time, then no.
  • If you have no income at all, then unfortunately, no.
  • If one partner will not be going back to work, then yes.
  • If you were behind on your debt before the crisis, then yes.
  • If you want someone to manage your debt renegotiations, then yes.
How to get clearance from debt review?

What to do if you are stuck in debt review

If you have applied for debt review and something has happened and you think you are stuck in debt review because you can’t find your debt counsellor or the debt counsellor is not helping you, here’s what happened and what you can do when you are stuck in debt review.

There are a number of ways that people can get stuck in debt review:

  1. Their debt counsellor disappears, businesses shut down all the time, and sometimes they don’t do the right thing and tell their clients
  2. Sometimes people stopped paying their debt review, they might be retrenched, and the debt counsellor withdraws. This person finds a job again and wants to carry on paying their debt, but who can advise him.

READ MORE: How to fix a bad debt review

What can you do if you want to pay your debt, but because something happened, your debt review went wrong somewhere. Now things are better and you want to pay and fix things up.

The law says that you need to pay off all your debt to get out of debt review.

There are a whole lot of companies out there who say they will get you off debt review, if they aren’t debt counsellors they are going to struggle.

What you need to do is transfer to a new debt counsellor.

At RD Debt Counselling, we do quite a lot of transfers of people who are either unhappy with their debt counsellor, or want to carry on with their debt review.

Once you have transferred, then the new debt counsellor has access to all your information and can get information from the banks, they can then give you advice on how to go ahead.

When all your debt is paid, then they can issue you with a clearance certificate, and your debt review status is removed from the credit bureau.

ALSO READ: How to get clearance from debt review?

What can you do if you aren’t in debt review, but have got things like a bad credit record, or have got judgements on your name that you need fixing because you need to buy something (like a new car)?

Every case is different. For instance with judgements, some are paid up, and people just need to have the listing on the credit bureau lifted, while for others, they have never paid a cent and they want to challenge the judgement in court, others say they know nothing about a judgement, and want to find out about it.

Can debt be written off if a person hasn’t paid for three years? How does this work?

Something we do a lot is get debt written off, and it is called the law of prescription.

What it says is that if you haven’t paid or promised to pay in the last 3 years, and the person or bank you owe hasn’t gone to court, then that debt has prescribed, and can get written off.

It’s a strange twist, but I believe that it was easier to write the law of prescription, than it is to get a letter from the financier agreeing to write off the money, we do still get a lot of debt written off.

The creditor may then never claim on that debt and it is taken off the credit bureau.

Lay-bye instead of using your credit card

Everything you need to know about lay buy

Lay buy – what is it, should you use it and the advantages and disadvantages of using lay buy?

If you don’t have cash, what is the next cheapest way of buying something over 3 months or longer?

Obviously cash is king, and it’s the cheapest. The next best way of buying anything is lay buy.

Have you ever tried to Lay Buy?

I know the kids are hardly back at school, but soon it will be winter and they will need winter school uniform, jerseys tracksuits, and so much more.

Quite a few school uniform suppliers have a lay buy option, so it’s best to call ahead and check before you go.

READ MORE: Lay-bye instead of using your credit card

Apart from school uniforms, what other things do people buy on lay buy?

There are people who have been using lay buy for years to buy clothes and appliances like fridges and washing machines

Truworths, as an example, is busy rolling out a nationwide lay-buy programme, and they expect to add a couple of percent to their sales as a result.

We all know online retailers as the place where you use your credit card. There’s good news, a number of online retailers are allowing customers to pay off that expensive pair of jeans or the new Kenwood Mixer over a few months, using a lay-bye system.

This is following the trends in the US and Australia, and they believe it is because people are becoming more nervous about using credit cards and getting into too much debt.

What are the advantages and disadvantages of lay buy?

Disadvantages of lay-bye

  • If you change your mind you could lose a cancellation fee (1%).
  • Not all businesses are honest – make sure you hand your hard-earned cash to a reputable business.

Advantages of lay-bye

  • Interest-free – you will pay close to double if you take the same item using store credit. Even a credit card paid in a few instalments will attract interest and fees.
  • Pay more or less than agreed, but you have to finish in the contract period.
  • Goods are the same price as cash – in easier instalments.

There are advantages and disadvantages, but you could save money using lay buy.