Statistics South Africa released the civil cases for debt April 2009, today the 18th of June 2009. This report looks at how many people have summonses issued against them for non payment of debt and also the number of civil judgements which means how many folk were actually found liable and then the report looks at the value of those judgements. Summonses are up by 15.6% over the last three months but have decreased by 5.5% since April 2008. Whilst judgements have increased 6.6% over the last three months and also declined by 1.6% year on year. However the value of judgements has jumped up 13.1% over the last three months and 17.4% over the whole year. The credit crunch is crunching.
- Don't hide your head in the sand
- Plan a budget
- Get debt counselling
These figures tell us that more and more people are feeling the strain, and that more and more people are being taken to court because of their debt burden. Debt is a scary thing and often the first response is to pretend that it isn't happening. However even though more people are having summonses issued against them it seems that there are more people dealing with their debt this year as evidenced by the drop in actual summonses in the three months to April. The value of civil judgements has risen to R 566 900 000! A large amount of money outstanding. The value of summonses has also grown meaning that as the crisis bites companies are calling in their debts to ease cash flow issues.
When you are faced with a debt problem the most important thing to do face up to it. Don't ignore it, debts have a nasty habit of spiralling out of control especially if they are prey to compounding interest. The National Credit Act created debt counsellors who are trained professionals empowered by law to help you get out of debt. They can freeze your debts from being collected and re-negotiate a repayment plan with the people you owe money to, while you get it sorted out. If you were lent to recklessly you may not even be fully liable for your debts, and even if you are but are feeling the pressure, get professional debt help before you need professional legal help!