Kedilatile Legodi
2 minute read
6 Oct 2019
7:38 am

Get a handle on debt with a bit of help

Kedilatile Legodi

Loss of employment, salary cuts, medical bills, rising fuel prices, food and cost of living in general, plus overspending, are some of the reasons why consumers end up being over-indebted.

Picture: iStock

A consumer is considered to be over-indebted if the available income is not enough to pay for basic living expenses and debts. The National Credit Act (NCA) introduced debt counselling as a debt relief measure, aimed at assisting and rehabilitating consumers who are over-indebted. Assistance is provided by debt counsellors, registered with the National Credit Regulator (NCR), through negotiation with credit providers and a reduction of monthly contractual payments in line with the consumer’s disposable income. Rehabilitation is realised through regular payments until the debt is paid up and a clearance certificate is issued. When consumers are under debt counselling,...