The reserve bank cut the interest rate by 100 basis points this week, making it the second drop in interest rates in the past two months. This reduction should help to increase the disposable income of many families across South Africa, thus relieving some of the major debt problems in South Africa.

Paul Slot, Director of audit firm, Octogen stated recently that he estimates that 400 000 consumers are over-indebted and in serious trouble and the numbers are increasing at an alarming rate. According to Angelique Walker, Executive Member of DebtDocter, the high rate of financially over-indebted consumers in South Africa is also leading to increased psychological problems, divorce and suicide.

Due to this added burden on the consumer, DebtDocter offers a holistic approach to debt counselling, which can include psychological counselling of the consumer. There is a solution to the debt crisis in South African namely debt counselling. This is a mechanism that has been brought about by The National Credit Act 34 of 2005 and in terms of which a consumer may be declared over-indebted and the consumer’s debt may be restructured as part of a Court Order. Whilst consumers are under debt counselling a credit provider may not attach assets or proceed with legal action. Angelique Walker says that should you be looking for a debt counsellor, you can contact the National Credit Regulator (www.ncr.org.za) by doing so you will be sure that your debt counsellor is accredited and registered.

Contact information:
Angelique Walker

DebtDocter
Tel: 0861 000 378

Octogen
Tel: 086 111 3967