Civil summonses for debt have risen according to new data released by Statistics SA on Thursday may 21st 2009. There are more people being taken to court for unpaid debts than before. In fact the rise of civil summonses for debt rose from March 2008 to March 2009 by an enormous 40.9 percent! With 125 306 cases issued in March 2009 alone! These are scary figures, so if you feel you are close to the wire with your debt, what can you do?
Out of the 125 306 people taken to court for debt in March 2009 67 174 had judgements recorded against them. Don't let that be you! Debt consolidation works by folding your debts into your homeloan allowing you to pay off at a lower rate of interest. If you compare credit cards you can find the lowest interest rate offering or get a balance transfer card. If you are really deep in it, don't panic, there are still things that you can do.
Debt counselling was set up by the National Credit Act of 2007 and basically provides a legal mechanism for you to protect your assets if you are over-indebted. Debt counsellors can help you draw up a repayment plan and are legally able to freeze claims on your assets whilst you undergo the process. This protects what you own while you pay it off. A debt counsellor can also negotiate with the people you owe money to on your behalf. With data like this showing that debt judgements are on the rise, the most important thing to do is to not put your head in the sand and deal with your debt issues today.