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DebtBusters Review

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DebtBusters is part of Intelligent Debt Management (IDM Group), which is one of the largest debt management companies in South Africa. IDM offers financial solutions to South Africans who are struggling with their finances and debts.

DebtBusters provides a debt consolidation service that combines multiple debt repayments into a single one. In addition, DebtBusters also provides a debt monitoring and debt counselling service offered by trained debt counsellors.

In this review, we will discuss DebtBusters’ debt management services. We’ll explore the features, benefits, and things to consider about their offerings. By the end, you’ll have a clear understanding of whether DebtBusters’ debt management services are the right solution for your financial needs.

DebtBusters at a Glance

DebtBusters at a Glance

  • Debt consolidation loan amount: No cap
  • Debt review term: n/a
  • Interest rate: n/a
  • Initiation fee: R1 250
  • Monthly service fee: n/a

What You Should Know about DebtBusters:

DebtBusters provides a range of valuable resources for effectively managing debt, such as debt counselling and consolidation services. While these offerings are immensely beneficial for individuals facing financial difficulties, it's crucial to consider the potential impact on your credit score when utilising debt consolidation.

It's important to note that debt consolidation may not always be the optimal choice, as there are instances where you could end up paying more than you would have originally due to the presence of high-interest rates. Therefore, it is essential to carefully evaluate the terms and conditions associated with debt consolidation before deciding.

Pros of DebtBusters
  • DebtBusters offers debt consolidation, which combines multiple debts into one manageable loan, making it easier to repay.
  • Debt Buster provides financial guidance to help you navigate your way out of debt. 
Cons of DebtBusters
  • Debt consolidation or other debt-relief options can be reflected in your credit report, potentially affecting your creditworthiness in the short term.
  • DebtBusters typically charge fees for their services, which can add to your overall debt burden.
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*Representative example: Estimated repayments of a loan of R30 000 over 36 months at a maximum interest rate, including fees of 27.5% APR would be R1 232.82 per month. BetterLoans is an online loan broker and not a lender. Our service is free, and we work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant’s credit score and other factors at the lender’s discretion. Loan amount R500 – R350 000. Repayment terms can range from 3 – 72 months. The minimum APR is 5%, and the maximum APR is 60%.

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How DebtBusters Stands Out?

DebtBusters offers personalised consolidation options, considering the unique needs of each family or individual. They analyse the client’s debts, income, expenses, and other relevant factors to understand their financial health. Skilled debt counsellors at DebtBusters leverage this information to negotiate the most favourable repayment rates. This all-encompassing approach enables DebtBusters to develop a personalised debt management plan that empowers clients to regain financial control. 

DebtBusters Services

Debt Consolidation Loan

Debt consolidation refers to merging multiple debt repayments into one. Replacing multiple monthly payments with one helps individuals better manage their finances and potentially lower their monthly payment amount, eliminating the need to track multiple due dates and interest rates. 

Debt Counselling

DebtBusters offers a debt counselling service, which entails working with a trained debt counsellor who provides guidance, budgeting advice, and negotiates with creditors on behalf of the individual to create a feasible debt repayment plan.

Credit Monitoring

DebtBusters provides a monthly credit monitoring service that enables customers to stay updated on their financial matters. This service allows customers to access and track their credit bureau accounts and balances easily.

Benefits of Managing Your Debts with DebtBusters

DebtBusters are crucial intermediaries, bridging the gap between clients and creditors. By adeptly negotiating with creditors on behalf of their clients, DebtBusters strive to obtain more advantageous repayment terms. Their efforts encompass a range of strategies, such as reducing burdensome interest rates, extending repayment periods to make them more manageable, and, in certain instances, successfully negotiating settlements.

These expert negotiations can lead to significant savings for clients, ultimately improving their financial standing and creating a brighter future. DebtBusters provides clients with a pathway to enhance their economic well-being.

In addition, DebtBusters’ debt monitoring service promotes awareness and attentiveness to one’s financial situation, which is not as common as it should be in South Africa.

DebtBusters Debt Services Interest Rate and Fees

DebtBusters create customised debt management service plans for each client, meaning they don’t provide a standard interest rate. However, it’s important to note that if you consider taking a consolidation loan, you can expect a higher interest rate. In most cases, you can expect an interest rate of 25% or higher. 

These rates are set to help individuals pay off their debts more efficiently, combining multiple debts into a single loan. The specific interest rate DebtBusters offers may vary based on factors like credit history and income.

In addition to the interest rates, DebtBusters requires an additional fee of R1 250 (excluding VAT) from the amount borrowed. This fee is applicable to all their services but will be clearly stated before the service contract is signed.

DebtBusters credit monitoring service is free, so you can expect to receive one credit report once a month when signed up for this service. Additionally, this service enables you to determine whether you require debt counselling or consolidation.

How To Qualify For DebtBusters Debt Management Services

To be eligible for any debt service (consolidation, counselling or monitoring) from DebtBusters, you are required to meet specific minimum criteria:

  1. Three months of non-internet stamped bank statements: Applicants need to provide bank statements for the past three months. These bank statements should be certified by the bank.
  2. Three months of pay slips: Applicants must submit their pay slips for the past three months. Additionally, it is essential to provide a contact person from their employer’s HR (Human Resources) division.
  3. Copy of green bar-coded Identity book/Smart ID card: Applicants need to provide a copy of their green bar-coded Identity book or smart ID card, which serves as an official form of identification. 
  4. Proof of residency: Applicants must submit documentation that proves their current residential address, such as electricity bills, rental agreements, or any official correspondence addressed to them at their residence. 
  5. Details of the next of kin: Applicants must provide their next of kin’s name, address, and contact number. 
  6. Settlement letter of the latest existing loan accounts: DebtBusters typically allow a maximum of five accounts to be settled through their debt consolidation program. These settlement letters help determine the outstanding balances and the accounts to be included in the consolidation process.

By ensuring that these minimum criteria are met and the necessary documentation is provided, individuals can start the application process and manage their debt with with DebtBusters.

How to Apply for Debt Management Services From DebtBusters 

To begin the debt consolidation process with DebtBusters, you can visit their official website and access the online form provided. Fill in the required information accurately, including your name and contact number. 

After submitting the form, DebtBusters’ team will review your details, and a representative will contact you using the contact number you provided. During the conversation, the representative will evaluate your financial situation to determine if you meet the eligibility criteria for debt consolidation or counselling.

If you qualify, they will guide you through the application process, explaining the necessary documentation and information you need to provide. Once you have submitted the required documents, DebtBusters will carefully assess your application. 

How Long It Takes DebtBusters to Approve Debt Management Services

DebtBusters do not specify a specific time frame for their approval process. However, numerous reviews on HelloPeter.com commend the company for its prompt and effective services. Customers express satisfaction with DebtBusters’ ability to handle their debt management needs swiftly. The positive feedback on HelloPeter.com underscores the company’s reputation for delivering efficient solutions to individuals seeking to manage their debt effectively.

Is DebtBusters a Trusted and Reliable Lender?

DebtBusters is a division of Intelligent Debt Management (IDM Group), established in 2004. Therefore, the company boasts more than 20 years of industry expertise.

DebtBusters is a well-established, reliable lender in South Africa. The company is registered with the National Credit Regulator (NCR). The NCR  is a regulatory body established in accordance with the National Credit Act of 2005. Its primary function is to regulate and oversee the credit industry in South Africa. 

DebtBusters has received an overall average rating on the widely recognised review platform HelloPeter.com. With nearly 5000 customer reviews, the company has scored 3.2 out of 5. This rating reflects the collective feedback from customers who have engaged with DebtBusters for their debt-related needs. 

DebtBusters Contact Details

  • Office Address: 5th Floor, 11 Adderley Street, Cape Town, 8001

  • Open:Mon-Thu: 07:00 – 21:00, Fri: 07:00 – 18:00, Sat: 09:00 – 12:30

  • Email: [email protected]

  • Phone: 086 999 0606

  • Website: https://www.sanlam.co.za/

Frequently Asked Questions (FAQs)

Taking out a debt consolidation loan could negative your credit score, but only for the short-term.

Once all your debt is repaid, DebtBusters will issue a clearance certificate. They will then send this certificate to all your credit providers, the NCR, and the credit bureaus. Within 5 business days, your credit record should be clear.

DebtBusters is South Africa’s leading debt management agency. The company is legitimate and registered with the NCR.

Sources:

  • https://www.debtbusters.co.za/guides/debt-consolidation-guide/
  • https://www.debtbusters.co.za/
  • https://www.debtbusters.co.za/contact/
  • https://www.debtbusters.co.za/faqs/is-debt-consolidation-effective-in-the-long-run/
  • https://www.debtbusters.co.za/faqs/what-are-some-debt-consolidation-possibilities/
  • https://www.hellopeter.com/debtbusters-sa
Foli Raheem
Foli Raheem

Foli has an MSc. Economics degree, and has been active in South Africa lending space for years. Whenever he is not writing, you will find him building websites.