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Will Debt Review Impact Employment Opportunities?

When debt review was first introduced in South Africa in 2007, many employers did not fully understand the process, thus leading to a number of difficulties for employees undergoing debt review. Today, however, debt review should not have any consequences on a person’s current or future employment opportunities. In fact, going under debt review can often have positive outcomes when it comes to employment.

Effects of going under debt review if you are currently employed

Most employers now view debt review in a positive light, as it is meant to be a positive rehabilitation process that assists and eradicates debt. Because it is a voluntary process, by choosing to go under debt review you are indicating to your employer that you are taking initiative and responsibility for your personal financial situation. For many occupations, especially those that entail money management, financial advice or financial products and services, it is essential that you are able to show that you can manage your own financials correctly. Most employers expect that if you cannot manage your own financial situation, you are unable to sufficiently promote or manage the business’s financials or financially advise your clients properly. Choosing to undergo debt review and counselling shows that you are capable of responsible financial decisions.

Debt review for job seekers

If you are unemployed but under debt review, you are not at a disadvantage when job seeking. In the same vein as above, you want to be able to show potential employers that you are financially responsible through your decision to undergo debt review. Employers or employment agencies will conduct a credit check before hiring you. If you are not under debt review, your judgements and defaults will negatively affect your chance of being hired, but a credit check that shows that you are under debt review should not. If you choose, you can ask your debt counsellor to provide you with a statement regarding the fact that you are under debt counselling to inform your potential employer about your financial status. However, unless you request it, this information is confidential and we will not notify your employers about your debt review status. For more advice on employment and debt review, contact One Debt today.

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