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In The Press

Stay informed with the latest news and expert opinions from South Africa’s leading news agencies. Debt Rescue’s CEO Neil Roets and Debt Rescue’s COO, Annaline van der Poel, shares economic insights, explains how debt review can help over-indebted consumers, and valuable financial advice. From expert interviews to breaking news, this page brings you honest discussions about money, debt counselling, and actionable tips to help you take control of your debt.

Government’s mooted debt forgiveness programme would plunge consumers deeper into debt in the long term, says debt management expert, Neil Roets. He said that recommendations by the Department of Trade and Industry (DTI) that the National Credit Act be amended to allow the minister to prescribe debt relief measures (debt forgiveness) to over-indebted households also poses a major threat to the finance sector. In a discussion document presented to Parliament, MacDonald Netshitenzhe, acting deputy director general at the consumer and corporate division of the DTI, said the National Credit Act currently makes no provision for the minister to provide any debt relief in specific circumstances. Such amendments would make it possible for the minister to introduce relief measures for certain classes of debtors such as those who had been retrenched. Roets, who is the CEO of debt management company Debt Rescue, said if the measures currently being investigated by the DTI were put into place it would bring welcome short term relief to deeply indebted consumers but that the longer term consequence could be extremely negative. “Lenders which included both banks and the retail sector already have to cope with prescription legislation which means if a consumer has not paid back any instalments on the outstanding amount for a period of three years it is said to have expired.” The DTI came to this conclusion after a number of deliberations were held by the portfolio committee last year during which banks and other credit providers cautioned against legislated debt relief measures. Trade unions and consumer bodies, however, welcomed the move, Debt Rescue said. The DTI’s input came after the portfolio committee last year held a number of deliberations on the debt situation in South Africa, following a decision taken earlier in the year to gain input from the public on the possibility of debt forgiveness. According to Debt Rescue, the department recommended that certain criteria be developed under which retrenched consumers, victims of unlawful grant deductions as well as those who fall prey to reckless lending may qualify for debt relief. “If lenders are compelled by legislation to write off even minimal amounts of debt, it would shake confidence in the South African economy to the core. Loans of all kind would become subject to stricter conditions making it much more difficult for the poor to secure credit,” Roets said. “Should the government decide to go ahead with this idea which is currently in the planning stage, it will ultimately be the banks who will lose out when lenders are unable to service their loans. The only way that the banks will be able to recoup their losses will be by charging higher interest rates for what will be perceived as high-risk loans.” Roets said consumers would find it more difficult to get loans because unsecured debt will be viewed as ultra-high risk if there was the possibility that it could be written off. He said figures released by the National Credit Regulator and Statistics South Africa showed that more than half of all consumers were three months or more behind in the repayment of their loans. A World Bank review noted that South Africans currently owed R1.63-trillion to lenders, and were some of the most indebted consumers in the world. Economist Magnus Heystek said that the proposed debt forgiveness programme was an ANC election ploy – trying to buy votes from the more than 50% of South Africans who were deeply indebted.

The big problem with SA’s ‘debt forgiveness’ plan

Government’s mooted debt forgiveness programme would plunge consumers deeper into debt in the long term, says debt management expert, Neil Roets. He said that recommendations by the Department of Trade and Industry (DTI) that the National Credit Act be amended to allow the minister to prescribe debt relief measures (debt forgiveness) to over-indebted households also

2 minutes, 52 seconds
weighttraining-business-tech

Top 9 ways we deal with stress in SA

Brief respite lies on the horizon for financially stressed-out consumers in South Africa, with all grades of petrol and diesel expected to drop by as much as 25 cents a litre in June. There is also expected to be a decline in the prices of certain staples like maize meal by as much as 10%

2 minutes, 32 seconds
debt affect middle-class South Africans

How these 6 types of debt affect middle-class

Debt management firm, Debt Rescue says that middle class South Africans have been feeling the economic downturn for some time, with petrol and electricity price hikes, along with spiralling food costs leaving many in a debt bind. The company highlighted a recent in-house survey conducted by Sanlam which showed that 73% of professional middle class

2 minutes, 3 seconds
MoneyWeb

Gevolge van rommelstatus te verskans

Stressvolle verbruikers se opsies om hulle teen die gevolge van rommelstatus te verskans Neil Roets – Debt Rescue.

0 minutes, 8 seconds
IOL Motoring

Junk could add 40c to petrol price

Johannesburg – South Africa’s downgrade to junk could see petrol going up by at least 40c a litre next month. This is according to Neil Roets, CEO of debt counselling firm Debt Rescue, who says the increase will have an immediate impact on the price of virtually all goods and services. Earlier this month, Fitch

1 minute, 45 seconds

Here is the expected petrol price for May – after credit rating downgrades

Following South Africa’s downgrade to junk status by several major ratings agencies, its first major impact is set to be felt by consumers with the fuel price expected to spike in May. With the rand hovering at 13.55 to the US dollar, petrol is expected to increase by 42 cents a litre and diesel by

2 minutes, 34 seconds
iAfrica

Fuel price hike!

CAPE TOWN – The Agricultural Business Chamber says next month’s expected fuel hike will offset some of the decreases in food prices over the next year. Quoting the Central Energy Fund’s figures, the Chamber’s Wandile Sihlobo says the petrol price could increase by 55 cents next month, and diesel by 37 cents per litre. According

1 minute, 2 seconds
African Reporter

‘Hefty’ fuel hike – tough times for consumers

This follows an announcement that petrol is expected to increase by 42c a litre and diesel by 39c a litre next month. While the country is reeling from the shock of devastating downgrades by two of the world’s three leading credit rating agencies, the effects of the junk status are beginning to bite the nation,

1 minute, 46 seconds
South Coast Herald

Junk status set to hit SA motorists in the pocket

The expected increase in the fuel price will have a knock-on effect. SOUTH Africans can expect troubled times following the country’s recent credit downgrade to ‘junk status’. According to a statement by Neil Roets, CEO of debt counselling firm Debt Rescue, the fuel price is expected to increase by more than 40 cents a litre

0 minutes, 40 seconds
food price decreases
Eye Witness News

Agbiz: Fuel price hike to offset food price decreases

The Agricultural Business Chamber (Agbiz) says the overall food inflation rate will still be lower this year compared to 2016. CAPE TOWN – The Agricultural Business Chamber says next month’s expected fuel hike will offset some of the decreases in food prices over the next year. Quoting the Central Energy Fund’s figures, the Chamber’s Wandile

1 minute, 8 seconds
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