Recently, the NCR asked Debt Counsellors how the Pandemic and Lockdown has affected them and their clients. The survey results were shared in a presentation to the Portfolio Committee on Trade & industry.
Here are some highlights:
84% of all consumers under debt review experienced some sort of negative impact due to the pandemic and Lockdown.
Among those effects was the short term or long term loss of income or jobs.
62% of Debt Counsellors had around 1/3rd of their clients (33%)temporarily lose their income.
70% of Debt Counsellors experienced 1/3rd of their clients (33%) becoming unemployed during the lockdown.
In an effort to assist consumers Debt Counsellors suggested that their clients make use of credit life insurance provisions. Nearly half of all consumers under debt review (covered in the survey) made such claims (47%).
Almost 50% also made enquiries about emergency loans during this time.
Amazing Concessions By Credit Providers
Consumers who enter debt review are often relieved when credit providers are happy to lower instalments, forego fees and lower interest rates. It can make a big difference to their cashflow. Many other consumers experienced great relief when their credit providers made further concessions and allowed for lower instalments during the initial stages of the lockdown.
Though the NCR did not give the exact stats, they did say that there had been a big drop in consumers enquiring for debt review during the lockdown.
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