Of the 18.6-million credit-active consumers, nearly half have impaired (blacklisted) credit records and are battling to service their debt.
Therefore we must ask an obvious question: if 46.5% of consumers are in default on repayments of their credit agreements, why is the number of civil summonses and judgments declining? The answer (in part) can be attributed to: debt counseling.
Eva Smith (Attorney) @ Lucid Living Debt counselling may not shield you from your creditors if they send you a letter of demand before you have applied for debt counselling.
Fitch estimates the value of debt counselling exposures of the four major banks at 21 billion rand during 2010, which accounted for between 14% and 18% of the banks’ non-performing loans.
Eva Smith (Attorney) @ Lucid Living In our article “Debt Counseling Stops Legal Action” we highlighted an arrangement concluded between the large retail banks and the National Credit Regulator (NCR), whereby the banks undertook not to proceed with legal action against clients who entered into debt review and who’s debt re-structure […]
Eva Smith (Attorney) @ Lucid Living Credit providers (including the “big 4” banks) recently signed a code of conduct in which they agree to change how they handle debt restructuring arrangements and to hold off on legal action under certain circumstances.
Adv Randolph Samuel @ Lucid Living There is an important misconception about debt counselling that I wish to dispel. That: being in debt review prevents a consumer from accessing further credit.
John Vaughan (Financial Advisor) @ Lucid Living In order to mitigate burgeoning bad debts, banks have established “credit rehabilitation” departments. The role of these departments is to provide clients with alternatives (i.e. restructuring repayment terms) to debt counselling. Banks aggressively promote the use of this service and commit to “helping you” […]
Adv Kate Thambiran @ Lucid Living Debt counseling has been met with skepticism by some and misunderstanding by others. Unfortunately, both views are underpinned by a lack of adequate knowledge.
Eva Smith (Attorney) @ Lucid Living Case Study Mpho Msani* had been to a debt counsellor (DC) to assist her with her overwhelming debt. She received a restructure proposal shortly thereafter and arranged for monthly payments to be made to the DC in terms of the proposal.