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Editor’s Note

It has been a month of just outright chaos. Just when consumers thought that things were the toughest they have been for a long time it seems that this is only the beginning of the pressures to come.

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Eskom are set to push their prices up by a whole whack which is bound to tip even more people over the edge. The new Reserve Bank Governor to be has announced that consumers can soon look forward to more interest hike rate hikes. This is partially because projections on SA’s growth and economic performance were wrong and have now been reduced and downgraded (as has it’s ratings internationally). The strikes rolling across various economic sectors have been blamed. And it seems that the unsecured lending “bubble” (there is no bubble!) is finally over. Smaller lender’s CEO’s and top management are selling off their shares left right and centre and jumping ship (including Wonga and now Capitec). African Bank shares are in the toilet. Added on top of that, the NCR are getting hammered from every which side in the media (for forcing / allowing the South African Fraud Prevention Services to register as a credit bureau with CPs sitting on the board) and at Parliament (regarding African Bank and the reckless lending investigations and fine) and have now launched a retaliatory strike against one Debt Counsellor [more about that in this issue].

All the while, desperate collections on prescribed debt continue at a pace (in a last ditched effort to get cash in) as the President has not brought the National Credit Amendment Act into effect yet.

 

On the flip side of the coin the NCT are trying to make life easier for consumers and Debt Counsellors helping them with regard to certain types of consent orders (where everyone agrees to a reduced repayment plan on debts) and Nedbank have been meeting with Debt Counsellors to discuss industry challenges. The DTI are set to release the new regulations any time now (in their final form) and it is hoped this will be the final obstacle in the way of the NCAA2014 coming into effect.

 

What does all of that mean? It means that if you are under debt review things are getting slightly easier for you (in the process) while those outside are in for a world of pain. Hopefully they will be wise enough to join you before their situation becomes too bad. We are now heading for the year end with all the fun and challenges that faces and it is time to start planning now for all these extra costs (see LIVING ON LESS). Year end is when most people flounder in the debt review (and normal debt repayment) process. Make sure you are not one of them. Keep paying, plan ahead for further chaos and get debt free.