Guiding consumers since 2009

Debt catching up with South Africans

By Staff Writer

Annual reviews of client's circumstances and ability to afford rehabilitation amounts showed a sharp drop over the months leading to April 2010 for the average South African consumer under Debt Review. Under the NCA Debt Counsellors must perform an annual review of their clients budgets.

Luke Hirst, MD of debt experts Debtbusters says ‘We have seen an enormous decline in our client's ability to increase their rehabilitation amounts to their creditors. From 86% of clients being able to increase their rehab amount by at least 4% per annum in September 09 to just below 60% to date, this is over a 20% decrease, showing that the situation is not improving. ‘

‘This downward trend comes as no surprise in our current economic climate and can be attributed to an increase in expenses far outweighing income. ‘

According to a source at the National Credit Regulator (NCR) the number of applications for debt counselling as at end of March 2010 was 161 749. This is an astonishing increase of 18 151 applications for Debt Counselling in just two months.

With electricity prices soaring by 24.8% this year, times are tough for consumers. While most clients under review are more than willing to pay a higher rehab amount to their creditors each month in order to get out of debt quicker, it is evident that for some this proves impossible.

Hirst continues, ‘This loss is felt by both the consumer and the banks. The consumer who continues with the struggle to become debt free and the banks who do not receive the funds owed to them."


It's worrying time for South Africans who just can't seem to stay out of debt trouble. If you need help, visit the DebtBusters section on the Justmoney site.

Recent Articles

Featured Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide