For consumers to keep their heads above water, they will need to reassess their budgets and kerb
expenses where possible. Budgeting and budget monitoring become crucial in tough economic
times.
Consumers who battle to meet their debt obligations and are at risk of losing their homes and
cars need to consider debt counselling as an option. The latest Credit Bureau statistics for the
quarter ending Sep 2015 indicate that of the over 23 million credit active consumers, 9.91 million
have impaired credit records. An impaired record means that a consumer is more than three
months in arrears on payments.
At this time in our economy, it is necessary that all South Africans take responsible and resourceful
steps to improve their financial situation. Overindebtedness adds to the costs of borrowing
money for all borrowers in the economy. If borrowers were to borrow and repay responsibly, it
would free up more capital for investment.
Debt Counsellors have a very important role to play in helping overindebted consumers
budget responsibly, educating them on the benefits of debt counselling and encouraging their
commitment to the debt review process.
Consumers that are already under debt review should have an annual review with their debt
counsellor to reassess their budgets in light of the expected increase in the cost of living.
As South Africans, we are resilient, we are committed, we are resourceful. But we all need to work
together to achieve financial freedom.
If you’re a Debt Counsellor, consider sharing this article with your clients.
IN A NUTSHELL is brought you by the DCM Business Partnership Programme™, designed to
support debt counsellors and consumers during the debt review process, in collaboration with
the National Payment Distribution Agency (NPDA). For help, contact the NPDA on 0861 628 628.
If you have suggestions for topics that you would like covered in future, please email info@dcmgroup.co.za
The NPDA was recognised as the industry winner for PAYMENT DISTRIBUTION and Care Premier as the industry
winner for DEBT COUNSELLING SOFTWARE at the Debt Review Awards 2015.