500% increase in people under debt counselling expected

By Staff Writer

South Africans under debt counselling to increase 500% in 6 months

The number of South Africans under debt review is likely to increase five fold over the next 6 months and will see as many as 150 000 South Africans under the debt recovery programme by June this year. Luke Hirst, MD of debt management experts, Debtbusters.co.za says that if the last month is anything to go by, those early estimates may even be conservative.

"We received a mass of applications from indebted South Africans over the festive season and particularly since the 1st of January; we don't expect the numbers to subside any time soon. We've been handling debt review cases for more than a year now and the first week of this year has been our busiest period ever."

"Once the bills for Christmas gifts and festive season spending arrive in the post boxes I would expect a further increase in applications - holiday time can be costly and South Africans are well and truly struggling under the strain of the current economic climate."

There are currently 28 000 South Africans under debt review, with the NCR's projection figures suggesting that as many as 200 000 South Africans could be under debt review by the middle of this year.

"Though the debt review process has been going for just over a year, indebted South Africans are finally seeing that delaying the process of tackling debt is making matters worse. The surge in debt review applications over the last months would suggest that many South Africans have finally reached a point at which there is no alternative. I would encourage anybody who feels that they may be in strife to contact a professional debt counsellor to assess their situation immediately because skipping a payment is the first step on a very slippery slope."

Debt Counselling is the process of working with a registered debt counsellor to restructure your monthly repayments to something you can reasonably afford. As the largest NCR accredited counsellor, Debtbusters can negotiate with creditors on the consumer's behalf and unlike debt administration, at the end of the debt counselling period the consumer is not left with a black mark against their name and can reapply for credit.

 

Recent Articles

Featured When to trade in your old car for a new one

You may have noticed that your car isn’t running as smoothly as it used to. This is particularly concerning if you’re hoping to sell it at a reasonable price, and buy yourself a modern alternative.

3 facts to consider when cancelling your contract

If you’ve ever had a relationship end in a bit of a mess, you’ll know that some people are more difficult to break up with than others. The pain, the push back, the back and forth – it can be a difficult process.

How long does debt reflect on your credit score?

If you’ve ever had debt that you didn’t manage well, you may have wondered how long the debt would remain, or be retained, on your credit score. This is known as a “retention period” and it is governed by the law.

Deals

Full Body Massage at Dembalicious Spa

Price: R99
When: Mondays to Sundays
Where: Johannesburg

Two-Course Asian Dining for Two

Price: R269
When: Mondays to Sundays
Where: Cape Town

One-Hour Yacht Cruise with Waterfront Charters

Price: R99
When: Mondays to Sundays
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions