Guiding consumers since 2009

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 What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions