30% more debt means more calls for debt review

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 in January?
   January sees a spike in debt review applications as consumers face the consequences of increased debt from holiday spending and unsecured loans.

2. How much has unsecured debt increased for South Africans?
   According to Investec economist Annabel Bishop, the average South African household has 31.8% more unsecured debt compared to the previous year.

3. What is causing South Africans to take on more debt?
   Many consumers are turning to loans to maintain lifestyle choices instead of cutting back on spending, pushing them closer to financial instability.

4. Is debt review a common solution for over-indebted individuals?
   Yes, more individuals are turning to debt review to regain control of their finances, making it a widely used debt solution in South Africa.

5. What is the impact of increased debt review applications on consumers?
   A larger number of people in debt review may lead to better negotiating power for Debt Counsellors and improved attitudes from creditors.

6. Who can help if I feel overwhelmed by debt?
   Zero Debt provides expert debt review services with qualified counsellors who guide clients through the process and help restore financial stability.

7. Is there any cost to get a debt assessment with Zero Debt?
   No, Zero Debt offers a free, no-obligation debt assessment to help you understand your financial position and explore your options.

8. How can I get started with debt review at Zero Debt?
   Visit the Contact Us page on the Zero Debt website and speak to one of their friendly consultants to begin your journey toward financial freedom.