Guiding consumers since 2009

Debt trouble skyrockets

By Staff Writer

The debt situation is getting worse according to new figures released by Statistics South Africa. The ongoing study into civil cases for debt measures how many people have been taken to court for debt troubles and how much they were taken for. The figures are sobering with both measures showing dramatic increases. Debt problems can be managed but they need to be approached pro-actively before the summons arrives. So what are the statistics?

 

  • 17.6% increases in summonses y-o-y
  • 32.4% increases in value of judgements y-o-y
  • R 656.3 million in judgements in August 2009

 

What can clearly be seen here is that the debt problem is getting worse, as we stagger through the recession more and more people are being taken to court for non payment of their debts, the value of those debts is also rising at a rapid rate. Lenders will, in general, view legal action as a last resort due to the costs associated with recovering debt legally but as the recession bites they are being less lenient in pursuing their money.

So if you are feeling the pinch and want to deal with you debt trouble before it deals with you then you can at least do a number of things. Contact the people you owe money to and try to renegotiate payment terms, you can also employ the services of a professional debt management specialist who will be able to negotiate on your behalf and protect your assets if the people you owe money to are pursuing the legal route. Deal with it as quickly as you can rather than wait to get bitten.

 

Recent Articles

Featured Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Check the interest before you take a loan

Justmoney takes a look at what influences the interest rate on a personal loan, the difference between secured and unsecured loans, and its impact on the interest rate.

One retirement, so many funds – pick the right one

Saving for retirement should be one of your priorities. However, it can be confusing to choose between a pension fund, provident fund, preservation fund, or a retirement annuity if you’re not familiar with them.

Which funeral cover lays your worries to rest?

A funeral can be as expensive as R50,000, depending on the type of funeral you want. That is why purchasing funeral cover is important. However, you don’t have to accept every offer that is put on the table. Shopping around can save you a large amount of money.

Deals

Wimpy Cheese Griller Brekkie Special

Price: R49.90
When: Until 9 September
Where: Nationwide

Mowana Spa Me Time Indulge Special

Price: R899
When: Until 31 August
Where: Fourways

Premier Hotels Weekend Getaway Special

Price: From R540
When: From 1 September
Where: Nationwide