Guiding consumers since 2009

Debtbusters gets 1429 applicants in two days

By Staff Writer
The National Credit Regulator received 1,429 applicants for debt counselling in just the first two days of February 2010, Debtbusters notes, an indication that the average South African consumer's debt problems are only getting worse.

It means that the total number of applicants for debt counselling has reached 145, 027 to date.

"If this trend continues, that would be over 20 000 applicants applying for Debt counselling per month - almost double the amount of any previous months - and a 14% growth rate per month," Debtbusters said.

Luke Hirst, MD of Debt experts Debtbusters said: "Unlike Europe and America, where interest rate cuts have allowed consumers to reduce their debt, in South Africa the rate reductions have been proportionately smaller and have just postponed the inevitable - consumers falling into arrears and slipping further into the debt spiral."

Since June 2008, interest rates in both the UK and USA have fallen by 90%. South Africa has not been so fortunate, with a mere 42% decrease, the debt expert noted.

"With the latest inflation figures breaching the 3-6% target range, rates may very well be decreased at the next Monetary Policy Committee meeting on 25th March, but we need substantial decreases to get to the root of the problem," Hirst said.

The latest Credit Bureau Monitor released by the NCR for Q3 shows that there were 18.01 million credit-active consumers, of which only 55% were in good standing. Seventeen percent were more than three months in arrears, and 15% landed up on adverse listings.

Need debt counselling? Click here!

Recent Articles

Featured New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria