200 000+ More Consumers in Trouble
Hundreds of Thousands fall behind on Debt Repayments
Every quarter the National Credit Regulator (NCR) release figures regarding the state of the credit market in SA. The most recent report from the NCR (with data collected form credit providers and credit bureaus) shows that over the last 3 months of 2014 -other than the millions who are already in serious trouble – an additional 211 000 consumers fell 3 months behind on payments. This means that they have an account (normally several) which they have not paid a cent towards for 3 months or more. Only 42% of consumers with credit accounts manage to pay their debts on time each month.
December is typically a month where consumers spend more than they should and prioritize spending over debt repayments. Even more telling will be the report on the first 3 months of 2015 (out in 3 months time) as this will show the fall out from all that festive season spending. The number of consumers applying for debt review in recent months has been high, higher than ever before. This is indicative of how cash strapped consumers are. Over the end of last year before the real repayment challenges came in another 200 000 plus consumers fell so far behind that the banks (and other creditors) will now be starting their legal collections processes. These consumers (and the creditors themselves) would do better to consider debt review as a responsible way to repay their debt in more manageable amounts each month. Debt review is the most cost effective collections method for creditors when dealing with consumers who are 3 months or more in arrears.
You can download both reports here: