In the articles below we cover debt counselling's key concepts. Be sure to have a look at our debt counselling overview , too.
Rising interest and inflation rates are forcing more people to find ways to manage debt and an increase in enquiries shows many are considering debt counselling, but there’s more to choosing the right debt counsellor than a Google search.
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As rising interest rates and inflation further pull on the country’s collective purse strings, more South Africans are considering debt counselling as a way to regain their financial footing. If making the decision to apply for debt counselling is an important first step, the first 100 days are critical.
Holidays are supposed to be carefree and relaxing, but a happy year-end break can soon turn to misery if, by the beginning of January, you realise you’ve spent too much enjoying yourself and are starting the New Year in financial difficulty.
Rising interest rates and an uptick in inflation are squeezing South African consumers between the proverbial rock and hard place, as the cost of servicing debts goes up while the purchasing power of their money declines.
R10 billion repaid in 2020 and consumers saved hundreds of thousands in interest
Debt counselling is effective way of helping South Africans who are struggling with debt, but a lack of understanding about the process, misinformation and concerns about being stigmatised mean some consumers don’t seek help or leave it too late.
In South Africa, the Consumer Protection Act of 2008 is the main piece of legislation that seeks to safeguard consumers. Amongst other things it sets out norms and standards, promotes a consistent legislative and enforcement framework and prohibits unfair marketing and business practices.
Enquiries about debt counselling have grown significantly in 2021 according to the National Debt Counsellors’ Association (NDCA), with some members recording increases of over 30%.
Debt counselling is a service introduced via the National Credit Act (NCA) as a debt relief measure intended to assist over-indebted consumers struggling to keep up with debt commitments. As within every service industry, you will find good and bad practitioners. The service you get depends on the service provider you go to.
From April to June 2020, over 1.5 million consumers took up payment holidays offered to them by various credit providers. Whilst this seemed to be the saving grace for stressed consumers at the time, industry experts estimate that it added nearly R21 billion to consumer debt. With additional payment holidays being highly unlikely, SA consumers are having to look to other methods of debt management, with debt review being a leading option.
There is a huge need for basic financial literacy in South Africa. Very often consumers choose an incorrect financial solution, simply because they don’t understand the terminology they are presented with. There is still huge confusion surrounding “debt consolidation” and “debt review”.
Almost everyone wants the fairytale romance and a happy ending. These days, however, it pays to be a little less romantic and slightly more pragmatic when it comes to matters of marriage. The status of your debt and subsequent union can have far-reaching implications on the rest of your life.
Debt counselling is not a fly-by night industry done by shady, hole-in-the- wall companies. Debt counselling has changed the lives of thousands of South African’s for the better - and with a tough 2020 behind all of us, it can do the same for you.
Debt review is a debt solution which assists over-indebted consumers to take control of their finances. The National Credit Regulator (NCR) is the entity which regulates the process of debt review and the debt counselling industry.