How does migration affect debt counselling?

Considering migrating? People move in and out of the country for different reasons and it can be a very exciting journey!

Unfortunately, in many cases people carry more than their luggage with them across the world - they carry their debt too, some are even under debt counselling.

If you’re considering moving due to your debt, it is not the right solution. It will follow you.

However, you can migrate and make your payments at the same time. And if you’re over-indebted, you can even manage your Debt Counselling process from abroad. Here’s what you need to know.

What is debt counselling?

The National Credit Act of 2007 formally introduced the process of debt counselling, which is a solution to debt that is very carefully handled. When someone is feeling debt-stressed and is found to be over-indebted, a debt counsellor may help them through the process of debt review. Through debt review, you’ll be able to get back in charge of your finances and make your monthly debt payments.

The process of debt counselling facilitates a smoother route to the end of debt. In the process, a debt counsellor will negotiate with creditors on behalf of the over-indebted person, in order to lower monthly payments and interest rates. In addition, the debt counsellor readjusts the clients financial plan and budget, considering the new interest rates and payments. As a result, the client will be able to make monthly repayments that they can actually afford.

Can you leave South Africa while under debt counselling?

Being under debt counselling doesn’t hinder you from moving to a new country. You can still move to and work in another country while you’re undergoing debt counselling.

The only thing that is important is that you communicate this with your debt counsellor. There may be some factors that are affected by your move and the debt counsellor will need to make arrangements for that.

You will still be liable for your monthly restructured payments. Failure to stick to your payments will lead to the cancellation of your debt counselling program. Your debt will go back to your creditors and they will take legal action against you.

As long as you keep making your repayments on time, everything should be in order and there should be no major issues.

What happens if you move overseas and stop paying your debt

Moving overseas does not mean that creditors can no longer harass you.

If you’ve moved overseas and stop paying your debt, your creditors will be in contact with you. If you’ve failed to make your debt counselling payments, you will no longer be under legal protection and creditors may even get a summons to bring you to court.

Since the debt you owe remains in South Africa, you will remain liable to the companies in South Africa.

What if you are planning to move from overseas to South Africa

At DebtBusters, we assist consumers who are moving into the country.

However, the debt must be local debt — that is, debt incurred from a South African company.

You will have to provide us with proof of your income, permanent residency, and your bank statements.

If your debt was incurred in another country, you’ll have to find a debt counsellor there to assist you.

What if you become over-indebted whilst outside the country?

DebtBusters has assisted, and continues to assist, consumers who live outside South Africa.

It does happen that sometimes you struggle to continue paying your debt while you’re living outside the country.

There’s no need to worry about this because we can still help you rebuild your finances. As long as the debt was incurred in South Africa, we can help you create a new repayment plan which will allow you to pay lower instalments, interest, and stop creditors from demanding payment.

If your debt was incurred in another country, you will have to contact debt counselling companies from that country.

Don't stop paying your debt after leaving South Africa

You may be tempted to stop paying your debts while you are away, but don’t give in. You are only doing yourself a disservice. Your actions may not affect your ability to travel, but some debt will haunt you.

For instance, if you owe the South African Revenue Services, your assets can be attached, and if you have assets outside South Africa, they may be repatriated to SA. It can also be hard to obtain your tax certificate clearance for your investments.

DebtBusters has issued thousands of clearance certificates to South African residents including those living outside of the country. You can be one of them by contacting our consultants at info@debtbusters.co.za or calling 086 999 0606.