With over 60% of South Africa's credit active consumers in arrears on one or more of their credit agreements, consumers with debt received welcome relief with interest rates being reduced by 0.5%.
In a statement on Thursday, debt management company Debtbusters said this would be welcomed by the average over-indebted consumer, as well as business and commerce.
‘We had hoped to see a rate cut by The Reserve Bank at the previous meeting, but at least it has happened now. The consumer debt levels in South Africa are still too high and we need this and hopefully further rate cuts, so that these debt levels can be reduced to more manageable amounts' said Luke Hirst, Managing Director of DebtBusters.
A further development in helping consumers with debt problems went live this week with the major banks and National Credit Regulator, launching a joint national consumer awareness campaign.
Hirst continues ‘This is a fantastic initiative and shows that debt counsellors, the credit providers and the National Credit Regulator are working together to help combat the epidemic of debt that is currently strangling many households and our economy. Debt problems are still not spoken about round the dinner table and this campaign will make more consumers aware that they have other options than just burying their head in the sand'.