Debt-free journey
Debt-free journey
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A debt-free journey
Get financial freedom with our helpful tips and solutions.
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Here’s how we can we help you
 

Easy access to credit with our Enhanced Credit Facility

Reduce your debt

Get expert advice and solutions

Earn attractive interest rates

Manage your debt

Find the best solution for you

Lump sum death benefit included

Debt counselling

Get peace of mind with payment structures

Get Cashback in your pocket every time you swipe

Absa Solutions Account

Created for customers under debt review

Moving towards a better future?

We love working together to ensure a better financial future for you with our expert advice and solutions.

Our financial advice

Take control of your finances now. If you are able to reduce your spending, you may be able to have more money available at the end of each month. Whether you decide to sell your house, pay off your debt quicker or reduce your actual monthly spend, we have the information and financial options to set you on the right path.

  • Get started

    • Pay your monthly bills on time
    • Apply for a new loan only if you really need it
    • Do not be fooled by sale items – those little amounts add up
    • Create a monthly budget to track your income and expenses
    • Use your monthly budget to identify where you can cut costs
    • Maintain a positive net worth
    • Determine your current net worth by  subtracting your total liabilities from your total assets:
      • Assets are the things you own that are paid off, the money in your cheque and savings accounts, and money from trust funds, policies and similar.
      • Liabilities are the items you owe money on, such as bonds, vehicle finance and credit cards.

  • Short-term goals

    • Do a yearly credit check so that you’re up to date on your credit status
    • Review your bank statements to ensure all transactions and debit orders are correct
    • Ensure your vehicle insurance is up to date
    • Look around for the best insurance quote before you commit to one insurer
    • Try to reduce your cellphone package, if you have one
    • Check that your bank accounts have an all-inclusive fees so you aren't charged for every transaction
    • Consider consolidating your loans so that you’re only paying off one loan
    • Try to reduce your overdraft and credit card limits to decrease your spending
    • Speak to your home loan provider about a fixed bond rate, so that your bond repayment won’t increase if the interest rate does.

  • Mid-term goals

    • Pay your accounts on time and, if possible, pay more than the agreed amounts
    • Pay an extra amount into your home loan every month to reduce long-term interest
    • Save as much as possible – this helps during times of unforeseen expenses.

  • Long-term goals

    • Invest as much as you can
    • Save a little extra for your children’s future
    • Invest in a home that you can afford – the value will increase over time, and you can sell it for more than you bought it
    • Consolidate your debt and home loan so that you’re paying off only one loan
    • Try to expand your career options by taking up a hobby that you can monetise or by applying for a promotion with a higher salary.

Managing your debt

If your debt is overwhelming, speak to us first. We can provide advice on how to manage your debt and take control of your finances.

  • The basics

    Answer the following questions:

    • Are your debit orders ever returned or do you miss monthly payments?
    • Are you using credit cards or loans to help pay monthly debt instalments?
    • Have you stopped paying off your debt completely?


    If you have answered “yes” to any of the above questions, we can assist you in managing your debt more effectively.

    Create a budget
    This can help to reduce your spending and provide a view of cost-saving opportunities.

    • Cost-saving opportunities can include:
      • Groceries
      • Reduce how often you shop in bulk
      • Look out for bargains and shop during sales
      • Plan ahead and create a list to stay within your budget.
    • Insurance
      • Maintaining your insurance is essential, as a loss without insurance can leave you in a worse financial position. To reduce the cost of insurance, ensure that you are paying a fair rate by obtaining competitive quotes, from a broker, on a regular basis.
    • Entertainment
      • Cancel unused TV and other subscriptions or reduce your subscriptions to the one or two you use most often.
    • Club memberships
      • Cancel unused memberships such as gym contracts.


    Complete the following steps to help measure your financial standing by comparing your total expenses against your income:

    1. Determine your monthly expenses

    • Fixed expenses: Monthly payments that remain the same every month (i.e. insurance, vehicle repayment and rent)
    • Variable expenses: Monthly payments that change every month (i.e. cellphone contracts, retail accounts, groceries and travel)
    • Periodic expenses: Payments that do not occur on a monthly basis but must be budgeted for (i.e. licence renewals and education fees).

    2. Add up all your expenses to determine the total. Are you spending more than your income? If your income does not cover your monthly expenses, it is important to prioritise the repayment of debt obligations and reduce unnecessary  expenses (i.e. gym contracts, DStv, etc.)

    Read through the suggestions provided under the Get financially fit section to help you reduce your debt obligations and free up available income.

  • Debt management solutions

    Living on a budget may be all it takes to reduce your debt and hold on to your assets.
     
    When reducing spending, increasing income and following a strict budget aren’t enough, it is important to contact your creditors to negotiate new, more affordable debt repayment plans.
     
    For additional assistance, contact us on 0861 222 272.

  • Rebuild your credit history

    When you’re dealing with reducing your debt, you might not have the time to improve your credit history. However, it is important to remember that a good credit history can help you with future credit applications.

    Here are a few simple steps to get started:

    1. Make sure all small debts are paid on time and settled as per the agreement with your credit provider.
    2. When borrowing a small amount of money, make sure the monthly repayments are made according to the terms of the agreement.
    3. Where you have a debit order scheduled, always have the required amount available in your account on the day of the payment.

    Maintaining a healthy credit history by meeting monthly credit obligations will gradually reduce the negative information reflected on your credit report, as credit record information can only be retained for seven years and six months. As time passes, your credit history will gradually include more positive information, if you manage your finances responsibly.

  • What is overindebtedness?

    Overindebtedness is a determination made by a debt counsellor when you are unable to pay your debt on time.

    How will I know if I am overindebted?

    • You are unable to make monthly payments.
    • You make use of payday loans to pay other debts.
    • You default on payments for certain accounts to pay other debts, with the hope that you will catch up on those you put aside.
    • You receive numerous calls for payment collections from your credit providers.
    • You have received a letter or summons from creditors and/or lawyers.
    • You have judgments granted against you.


    If one or more of the above points apply to you, then you may be overindebted and in need of financial management assistance and debt counselling.

    How do I fix it?
    The first step is to approach your credit providers and negotiate lower instalments, if possible.

    
If your credit providers are unable to negotiate lower instalments, it is important to contact a registered debt counsellor before legal action is taken against you.

If you are not familiar with any debt counsellors, contact the National Credit Regulator (NCR) on 0860 627 627 to locate a debt counsellor in your area or visit the NCR’s website at https://www.ncr.org.za (click Registrants and select Debt Counsellors).


    Read the Debt counselling section for more information.

    For additional assistance, contact us on 0861 222 272.

Debt Counselling

Consumers are advised to seek help during these tough economic times instead of rushing to apply for more credit to pay off their debts.

  • What is debt counselling?

    • Debt counselling is a process intended to assist overindebted consumers through budget advice, negotiations with credit providers for reduced payments and debt restructuring. Debt counselling services can only be offered by an NCR-registered debt counsellor.
    • Each stage has time frames that all parties have to adhere to. Within this period, credit providers cannot issue letters of demand, summonses or enforce legal steps, as the consumer will be protected.
    • It is important to approach a debt counsellor before legal action is taken, as credit agreements for which legal steps have already started (i.e. after a Section 130 summons has been issued) will be excluded from the debt counselling process.
    • To apply for debt counselling, the consumer must have disposable income. If the consumer is married in community of property, both parties have to apply for debt counselling.

  • The pros and cons of debt counselling

    Pros:

    • Credit providers can no longer attach any assets or take any further legal action against the credit agreements that have been included under debt counselling, as long as the consumer meets the new repayment terms.
    • Debt repayments can be made through one regular monthly payment that is distributed by a payment distribution agent.
    • Debt counsellors can provide advice on ways to cut your monthly costs and structure your repayments, to assist you in financial rehabilitation.

    Cons:

    • While under debt counselling, a consumer is unable to enter into any new credit agreements. Access to credit facilities on a credit card or cheque account is restricted.
    • A consumer under debt counselling is also unable to withdraw from debt counselling once they have been confirmed as overindebted, without the issuance of a court order stipulating the consumer’s rehabilitation and rescindment of all ordered concessions. Alternatively, all short-term credit agreements must have been settled as per the court or tribunal order before a clearance certificate can be issued and the consumer can be withdrawn from debt counselling.

  • About the National Credit Act

    What is the National Credit Act?
    The National Credit Act (NCA), which requires all financial institutions and lenders to register as credit providers, came into effect on 1 June 2007. It aims to protect your rights as a consumer by regulating our country’s credit-granting practices so that you can benefit from a credit environment that is transparent, fair and responsible.

    The NCA makes responsible lending a shared responsibility between you and your credit provider. By making your credit or loan applications transparent, fair and easy to understand, it gives you the knowledge and power to manage your debt effectively.

    The NCA reminds you that you have both the right and responsibility to understand and question how your credit agreements are structured, what payments you will be required to make, and what the terms and conditions involve.

    Credit agreements that are regulated by the NCA

    • Banks:
      • Loans
      • Mortgages (bonds)
      • Overdrafts
      • Credit cards
      • Vehicle finance
      • Any other personal finance
    • Retailers:
      • Furniture finance
      • Clothing accounts
      • Store credit?
    • Other:
      • Microloans and pawn transactions
      • Any other type of credit or loan provided to you.

    For more information, visit http://www.ncr.org.za/

  • How does the NCA benefit you?

    The NCA ensures that:

    • You are not discriminated against when you look for credit.
    • You can get all the information you need on credit agreements in the official language of your choice.
    • You understand all the terms used in credit agreements.
    • You understand all fees, costs, interest rates, instalments and any other details.
    • You are offered the best products for your needs and the most responsible lending options.
    • Your interest rate is reasonable.
    • You can speak to a debt counsellor if you have trouble with your repayments.
    • You can say no to increases on your credit limit.
    • You can decide whether or not you want to hear about products or services from credit suppliers via phone call, SMS or email.


    What can you do to borrow affordably and wisely?

    • Avoid buying goods on credit just because you can. Make sure that you really need and can afford to pay for it over the agreed term.
    • Always pay off your monthly instalments on or before the due date to keep interest rates to the minimum and maintain a good credit record.
    • Always pay off the loan with the highest interest rate first. This helps you to save on interest payments in the long run.
    • Only apply for credit from a registered credit provider, such as Absa.
    • Give the credit provider all the information they ask for to help them understand how much credit you can comfortably afford to pay back.
    • Avoid turning short-term debt (like credit cards) into long-term debt (such as your home loan) simply to increase your cashflow now. You don’t want to repay last month’s grocery bill over the period of your home loan, as you pay more interest over a longer period.
    • Live within your means by not spending more than you earn.
    • Find out what your credit rating is and update your information regularly.


    What is Absa’s language statement of intent?
    The NCA ensures that a customer has the right to receive credit agreements in plain and understandable language. The National Credit Regulator requires Absa to make these documents available in English and Afrikaans but, if a customer requires assistance in another official language, this can be reviewed.

Understanding collections

Collections refer to the way your debt is paid to the creditor. If we are unable to collect the required payments from your account, interventions must be put in place to avoid an accumulation of non-payment. It is important to understand your options if you are unable to pay your debt.

  • I cannot pay my vehicle instalment

    It is important to reach out to Absa on 0860 222 272 to discuss possible solutions.

    Available options include:

    • Short-term arrangements
    • Loan restructure
    • Let Absa “HelpUSell” your vehicle
    • Voluntary surrender of the asset.

  • Can I give my car back to Absa?

    Yes, you can. Giving back your vehicle is one of your options. It’s important to understand that the vehicle is security to the loan and that you will be liable for the shortfall after the sale. It is therefore important to explore all available options.

  • What is voluntary termination?

    Voluntary termination occurs when Absa obtains signed consent of voluntary surrender via a voluntary termination document from the customer authorising the bank to sell the vehicle on their behalf.

  • Can Absa help me to sell my car?

    Yes, if you’re unable to continue with repayments and want to avoid having the car repossessed, you can use our FASTBuy HelpUSell process to market and sell your car to one of our approved dealers, provided that you meet the qualifying criteria (Ts&Cs apply). Email us at FASTBuyHUS@absa.africa or call FASTBuy HelpUSell Support on 0860 789 555.

Download the Absa Banking App today!

 Obtain access to the following tools to assist you in managing your debt:

  • Absa Savings Coach

    Log in to your Absa Banking App and go to Offers, Select the Tools tab and Tap on Absa Savings Coach and get started.

  • Take control of your finances with Absa Credit Coach

    What Absa Credit Coach can do for you:

    • Check your TransUnion score for free, any time with no penalties
    • Personalised guidance with tips tailored to your situation
    • Easily identify and pay overdue account
    • Get answers to your credit questions and improve your financial situation

Sell your car on Absa FASTBuy

Request your settlement quote and safely sell your car on FASTBuy.

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Call: 0860 669 669
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