Edward West
10 July 2009
Johannesburg — THE increasing number of consumers applying for debt relief came from all income groups, First National Bank (FNB) Credit Card head Barrot Whiteford said yesterday.
Statistics from the end of December last year show that SA has more than 17-million credit- active consumers, with 42% of accounts reflecting as "impaired".
FNB debt relief statistics showed that almost 60% of those applying for debt review were male. Forty percent of applicants were between the ages of 30 and 40; and more than 60% were white. Almost 40% earned between R150000 and R350000 a year.
"These statistics are a reflection that South African consumers who are in need of debt relief are highly diversified," said Whiteford.
Nobody could have foreseen the impact of the global financial crisis on SA's economy and more and more South Africans were finding themselves in financial distress.
Consumers can contact the National Credit Regulator's office for a list of registered debt counsellors in their area.
FNB Credit Card offers its customers internal debt counselling. It had divided credit users into four levels, offering them solutions to help them through difficult financial circumstances, said Whiteford.
The National Credit Act caters only for customers who are already in debt, leaving other types of credit users helpless and not sure where to turn.
FNB Credit Card clients who are struggling with their card repayments are classified as: customers who are effectively managing their debt; customers who have lost their jobs or have been retrenched; customers who are in a debt crisis; and good customers who are on the verge of a debt crisis if they do not get some relief.
Absa Bank says consumers facing debt problems should not wait until it is too late before contacting the bank for assistance.
Arrangements were in place to assist consumers who met certain criteria, Absa said in a statement. It said the last thing the bank wanted to do was repossess a vehicle or someone's home.
Where an asset was involved, Absa would send a risk-mitigating officer to visit a customer in financial distress and would do an analysis of the customer's situation.
A rapid auction process was available to customers if the only option was to sell a property or an asset, Absa said.
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