Major banks have warned that indebted South Africans opt for debt counselling when their financial circumstances do not warrant it.
Major banks have warned that many heavily indebted South Africans opt for debt counselling when their financial circumstances do not necessarily warrant it.
“This is often done through social media and telemarketing campaigns, without disclosing crucial details about the process, meaning clients cannot make an informed decision. In many instances it is too late for people to get out of the legally binding process by the time they have all the facts.” Altogether, R265.8 billion of the total outstanding debt was more than 30 days in arrears – an increase of 25% – compared to the corresponding period in 2022.
In 2023, South Africans’ interest payments on outstanding debt increased to R318.5 billion, according to the NCR. This is an increase of R115.5 billion.“But the consequences of the high interest rates are not only the high cost of living. It also impacts financial resilience.”Van Tonder is of the view that indebted consumers should first approach their banks and creditors before considering debt review.
“In instances where the client is in deep trouble, or find themselves in unemployment, we could offer payment plans and help to restructure home loans or car payments and personal loans.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: Long Lines Mean Late Voting for South AfricansReports of South Africans standing in long lines waiting to cast their ballots will likely lead to delays in some districts. However, the law allows voters in line at the voting station's closing time - 9pm - to remain in line to vote.
Read more »
South Africa: Divided South Africans Vote in Tight Elections That Could End ANC DominanceJohannesburg - South Africans go to the polls Wednesday for parliamentary, provincial and local elections. After 30 years in power, Nelson Mandela's African National Congress (ANC) party could be forced into a coalition.
Read more »
South Africa: A Tricky Tax Dilemma for South Africans Living OverseasAnalysis - Leaving South Africa without formally emigrating can lead to tax issues with SARS, even after 10 years.
Read more »
South Africa: Corruption a Big Worry for Young South Africans Voting in Key ElectionsYoung people are vying for change as South Africa heads to elections after three decades of democracy. Confidence in the ruling ANC, which is tipped to lose its majority, is particularly low for the youngest voters casting their ballots for the first time.
Read more »
'We Will Do More and Better' - Ramaphosa to South AfricansCyril Ramaphosa has been sworn in for his second term as the country's president during a ceremony at the Union Buildings in Tshwane. Ramaphosa's inauguration will enable him to form his Cabinet after extensive consultations with the Government of National Unity (GNU) partners.
Read more »
Johannesburg Woman's R2700 Makro Haul Impresses South Africans, Shares VideoA woman in Johannesburg showed off her R2700 Makro shopping haul in a TikTok video. The clip went viral online, leaving many people impressed by her purchase.
Read more »