WHILE more South Africans have returned to work as a result of the easing of lockdown restrictions, the National Credit Regulator (NCR) is urging those earning an income, but unable to make ends meet, to make use of debt counselling. 

“Although many sectors have been allowed to get back to work, many South African households are in significant financial hardship and others have been struggling to make ends meet, even before the Covid-19 pandemic,” acting Manager for Education and Communication at the NCR, Advocate Kedilatile Legodi, said.

The NCR said debt counselling was introduced in the National Credit Act (NCA) in 2007 as a debt relief measure intended to assist over-indebted consumers struggling to repay their debts.

This is done through the restructuring of their debts and making repayments manageable. 

Read also: SA government prepares to close temporary field hospitals as Covid-19 cases decrease

“While it may be difficult for many to confront their financial hardship, consumers who are receiving an income are encouraged to act immediately by considering debt counselling as a debt relief measure and to do so before their assets, such as houses, cars and others, are repossessed by credit providers,” said Legodi.

Debt counselling presents several benefits, including: 

• An opportunity to repay debt without borrowing more money or taking on extra debt. 
• If you apply before credit providers institute legal action to enforce the debt, you receive protection against such legal action and repossession of your assets.
• If you continue making repayments while under debt counselling, you will still be protected from repossession of your assets until all your debts are paid up.
• A registered debt counsellor negotiates reduced repayments on behalf of the consumer, using the consumer’s existing income.

The credit regulator also reminded consumers that for one to apply for debt counselling, a consumer must have an income and that a consumer cannot go under debt counselling if they are still under debt administration.

In other news: CANSA offers telephonic counselling

In addition, debt counselling is offered by NCR registered debt counsellors, whose registration status can be verified by visiting the NCR website or by calling 0860 627 627.

The NCR also reminded consumers that debt counselling is not offered for free.

Caxton Local Media Covid-19 reporting

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