Neil Roets, CEO of Debt Rescue, highlighted that South Africa’s National Credit Act is one of the most advanced systems globally for assisting over-indebted consumers.
Proactive Debt Repayment
He explained, “It assists over-indebted consumers to not remain in that debt spiral but to take a proactive step in finding a way to repay the debt. Most consumers actually want to pay their debt; they just do not have the means, the ability, or the funds.”
Role of Debt Counselling
Roets elaborated on the role of debt counselling: “This is where debt counselling comes in and says, ‘okay, you are going to honour it, but you’re going to restructure it legally, albeit over a longer period of time, but instead of ending up just taking another loan’.”
Benefits of Debt Counselling
He added that debt counselling enables consumers to repay their debt, become debt-free, and re-enter the credit market. “It gives them the ability to access a credit card, a vehicle, and a home loan after they’ve completed the debt review process.”
Unique Aspects of South Africa’s System
Roets further noted the unique aspect of South Africa’s system: “In South Africa, all your debt can be included as part of this process to protect your assets and give you breathing room to know you have sufficient funds to cover your necessary expenses and not have to worry about taking out another emergency loan to see you through to payday.”
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