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 Ensure your family doesn’t feel the impact of your retrenchment

Retrenchment doesn’t only change the way you view yourself; it also alters the relationship between you and your family. Things can go from good to bad within a short space of time. But you can do something to prevent your family from feeling the impact of retrenchment.

Someone got injured on my property – now what?

Life is unpredictable and no matter how careful we are, accidents happen. But what if someone has an accident while visiting your house? Your guest could fall off the stairs, slip on the floor or get bitten by your dog. 

Are you ready for a house upgrade?

You moved into your home knowing one day you would need to make some changes to turn it into your dream home - add a new bedroom, a second bathroom, build a double storey or even move out.

How income protection can help you when you’re sick

Your greatest asset is probably your ability to earn an income, which provides a certain lifestyle and the capacity to take care of your dependants. That’s why it’s so important to protect your income against unforeseen illness or injury and to provide for your dependents after your death.

Deals

Baby Boom Toy Specials

Price: Available on request
When: Daily
Where: Online

Readers’ Warehouse Book Bundle Deals

Price: From R40
When: While stocks last
Where: Online

Bidorbuy Crazy Wednesdays

Price: From R1
When: Daily
Where: Online


Latest Guide

Complete guide on personal income tax