Archive for the ‘Debt Counselling Works!’ Category
Debt Counselling Definitely Works!
January 9th, 2010 | 
Author:
iNDC … Financial Wellness Centre, S.A.
Debt Counselling is Highly Effective
Debt Counselling is most definitely working, it is injecting significant amounts of money back into the economy each month which helps businesses stay afloat and jobs to remain secure, but also forms an important educative tool in teaching consumers how to effectively manage money.
At this stage, there is 17.4 million credit-active Consumers in S.A.
Of the 17.4 million credit-active Consumers, only about 8 million is completely up to date with their payments, which means that as much as an estimated 9 million Consumers could be 3 months plus behind on payments.
At present more than 138,000 Consumers were under debt review and that figure was increasing by 10 000 a month – which could take it to 260,000 by the year-end.
By contrast there were a little more than 3000 Debt Counsellors to assist them!
The National Credit Regulator said those under Debt Counselling owed R20bn to creditors – R12bn of which was owed for mortgages.
Increasingly banks were starting to realise that Debt Counselling was bringing money back into creditors pockets, while helping consumers and reducing legal bills and animosity.
Banking Association of SA CEO Cas Coovadia, had invited closer links between Debt Counsellors and Banks to resolve ongoing problems around extensive consumer indebtedness.
Research has shown that those who earn R15 000 and upward – and Consumers from 30 to their mid-40s across all race groups - are those most seriously in debt. Additional research by the University of South Africa claims that the most indebted group earn more than R700 000 a year.
There is a growing trend for debt to be negotiated in a more constructive way than in the past between creditors, debt counsellors and other parties.
People are seeing that debt counselling is effective and that it is in the interests of individuals, companies and the nation for people to get out of debt and learn how to manage money more effectively.
Debt Counselling is most definitely working, it is injecting significant amounts of money back into the economy each month which helps businesses stay afloat and jobs to remain secure, but also forms an important educative tool in teaching consumers how to effectively manage money.
At present more than 150,000 of 17.4 million credit-active Consumers were under debt review and that figure was increasing by 10 000 a month – which could take it to 270,000 by the year-end.
By contrast there were a little more than 3000 Debt Counsellors to assist them!
The National Credit Regulator said those under Debt Counselling owed R20bn to creditors – R12bn of which was owed for mortgages.
In Sept. 2009, the NCR said that 1.3 million South Africans had fallen into arrears from June 2007 to July 2009.
Increasingly banks were starting to realise that debt counselling was bringing money back into creditors pockets, while helping consumers and reducing legal bills and animosity.
Banking Association of SA CEO Cas Coovadia, had invited closer links between Debt Counsellors and Banks to resolve ongoing problems around extensive consumer indebtedness.
Research has shown that those who earn R15 000 and upward – and consumers from 30 to their mid-40s across all race groups - are those most seriously in debt. Additional research by the University of South Africa claims that the most indebted group earn more than R700 000 a year.
There is a growing trend for debt to be negotiated in a more constructive way than in the past between creditors, debt counsellors and other parties.
People are seeing that debt counselling is effective and that it is in the interests of individuals, companies and the nation for people to get out of debt and learn how to manage money more effectively
Debt Counselling is most definitely working, it is injecting significant amounts of money back into the economy each month which helps businesses stay afloat and jobs to remain secure, but also forms an important educative tool in teaching consumers how to effectively manage money.
At present more than 150,000 of 17.4 million credit-active Consumers were under debt review and that figure was increasing by 10 000 a month – which could take it to 270,000 by the year-end.
By contrast there were a little more than 3000 Debt Counsellors to assist them!
The National Credit Regulator said those under Debt Counselling owed R20bn to creditors – R12bn of which was owed for mortgages.
In Sept. 2009, the NCR said that 1.3 million South Africans had fallen into arrears from June 2007 to July 2009.
Increasingly banks were starting to realise that debt counselling was bringing money back into creditors pockets, while helping consumers and reducing legal bills and animosity.
Banking Association of SA CEO Cas Coovadia, had invited closer links between Debt Counsellors and Banks to resolve ongoing problems around extensive consumer indebtedness.
Research has shown that those who earn R15 000 and upward – and consumers from 30 to their mid-40s across all race groups - are those most seriously in debt. Additional research by the University of South Africa claims that the most indebted group earn more than R700 000 a year.
There is a growing trend for debt to be negotiated in a more constructive way than in the past between creditors, debt counsellors and other parties.
People are seeing that debt counselling is effective and that it is in the interests of individuals, companies and the nation for people to get out of debt and learn how to manage money more effectively.
Posted in 
