Managing your money can feel overwhelming, especially when it comes to things like credit, debt, and budgeting. At Mdalisu, we believe everyone deserves to understand how money works, because that’s the first step to building a better financial future.

Here, we explain some important words that have to do with your credit and money. We also show how Mdalisu can help if you are having money problems or want to plan better for the future.

Over-Indebtedness

Being over-indebted means you owe more money than you can afford to pay each month.
For example: you might be earning R10 000, but your mashonisa loan repayments, school fees, rent, and groceries add up to R15 000. This means your debt is higher than your income.

This is not something to be embarrassed about – we know life is expensive, especially when you’re supporting a family, helping relatives, or dealing with emergencies.

Mdalisu helps you understand your money better through simple guidance and our step-by-step financial wellness and education programme, the Credit Ready Plan (CRP). This helps you to build healthy financial habits and become credit-ready.

Credit Score

Your credit score is a number that shows how well you’ve handled credit in the past.
 Think of it like your “reputation” with shops and banks – if you’ve missed a few clothing account payments or a loan, your score may drop. But if you’ve been paying on time, your score goes up.

Mdalisu helps people fix their score by checking for mistakes, disputing errors at the credit bureaus, and guiding you on how to build your score step by step.

Debt Review and Administration Orders

Mdalisu doesn’t offer debt counselling, but we do help people who need assistance with removing or rescinding (cancelling) of credit obstacles, such as Debt Review, Judgments, Administration Orders and Defaults [JM1] , subject to qualifying criteria.

Debt review and administration orders are legal ways to help people who are drowning in debt.

• Under debt review, someone speaks to your creditors to try lower your payments.
• With an administration order, the court helps you manage your payments through an appointed person.

But once you’re under these, you often can’t take out new credit – which can hold you back.

Credit Bureau and Adverse Accounts

A credit bureau keeps your financial history – good and bad.
 If you don’t pay your furniture account or a loan from a bank, it can be flagged as an “adverse listing” or “handed over” account, and sent to debt collectors.

Even if you paid, your name might still be there by mistake. Mdalisu helps dispute these errors and remove old listings, so you can move forward.

Payment Arrangements and Settlement Letters

If you’re behind on payments, you don’t have to hide or ignore your creditors. You can make an arrangement that fits your income.

Example: You owe R3 000 for a clothing account at Jet, but you can only afford R500 a month. With a payment plan, you can pay that slowly – and a settlement letter shows the agreement.

Mdalisu helps you talk to creditors, draw up payment plans, and get the letters you need to fix your credit.

Fraud and Identity Theft

Have you ever found a loan or store account on your name that you never opened?
 Someone could be using your ID to borrow money or open accounts – this is identity theft, and it’s a real problem.

Mdalisu can help you report it, fix your record, and protect yourself through SAFPS (the Southern African Fraud Prevention Service).

How Mdalisu Can Help

Our Credit Ready Plan (CRP) is made for everyday South Africans – from Khayelitsha to KwaMashu – who want to sort out their finances and plan for better days.

Whether you:

• want to apply for a car or home loan
• need to fix your name after blacklisting
• or just want help understanding your money

We have once-off or monthly options – so you can choose a plan that works for your pocket.

At Mdalisu, we understand life eMzansi. School fees, funeral policies, loan repayments, and groceries – it all adds up. That’s why we’re here: to walk the journey with you and help you take back control.

Chat to Mdalisu today to see how we can help.