30% more debt means more calls for debt review

Why More South Africans Are Turning to Debt Review in 2024

Though the month of January is only half way through, debt counselling firms are reporting increased numbers of applications for help with debt review in January 2013 compared to January 2012.

This is no wonder as country wide indebtedness levels have grown. Consumers have struggled to curb spending and have rather turned to loaning money to maintain their lifestyle choices. As the “average” South African takes on more debt they bring themselves closer to financial disaster. Investec economist Annabel Bishop reports that the “average” SA household now has 31,8% more unsecured debt than a year ago.

Neil Roets, CEO of the debt counselling firm Debt Rescue says that this January there had been more than double the number of deeply indebted individuals applying  for relief through the debt review process compared to last year.

The upside of increased applications (besides more work for Debt Counsellors) is that more consumers in debt review gives more power to Debt Counsellors as well as debt review consumers. Hopefully these increased applications will eventually reflect in better attitudes by creditors.

If you find yourself overwhelmed by mounting debt, now is the time to take control and seek professional help. With the alarming rise in debt levels and more people turning to debt review, you’re not alone in this journey. At Zero Debt, we understand the challenges of managing your financial obligations and are here to support you every step of the way. Our expert debt counsellors can help you navigate through this difficult time, providing you with the necessary tools and guidance to regain financial stability. Don’t wait until it’s too late – contact us today for a free, no-obligation debt assessment. Take the first step towards a debt-free future by visiting our Contact Us page and getting in touch with one of our friendly consultants. Your path to financial freedom starts here.

FAQs & Answers

1. Why are more people applying for debt review this year?
Rising levels of unsecured debt and increased financial strain have led more people to seek relief through the debt review process.

2. What does an increase in debt review applications mean for consumers?
More consumers under debt review strengthens the position of both debt counsellors and clients, encouraging fairer treatment from creditors.

3. How much has unsecured debt grown for the average South African?
According to recent data, the average South African household now has over 30% more unsecured debt than a year ago.

4. Is January a common time for debt review applications?
Yes, debt counsellors often see a spike in applications in January as people face the consequences of overspending during the holidays.

5. What is the risk of taking on more unsecured debt?
Higher debt levels increase the risk of financial hardship, missed payments, and potential legal action from creditors.

6. How can debt review help people in severe debt?
Debt review protects assets, stops legal action, consolidates repayments into one affordable monthly amount, and reduces interest rates.

7. Who can I contact if I’m struggling with debt?
You can reach out to Zero Debt for professional debt counselling and a free, no-obligation debt assessment to help regain financial stability.

8. What is the first step to start debt review?
Complete a free debt assessment with a registered debt counsellor who will guide you through a structured repayment plan based on your situation.