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Media Info
 Debt-laden consumers seek refuge after overspending
12 January 2010
Consumers had flooded debt counsellors' offices nationwide after over-extending themselves during the holidays, debt counsellor Consumer Assist said yesterday.
"They are now panicking as they face school and university fees and creditors begin calling," Consumer Assist said in a statement.
Consumer Assist Cape Town manager Leila Beltramo said they had received many enquiries in the first week of January.
"There are a range of problems. In some instances, people expected bonuses that did not materialise or were far smaller than in previous years, or they did not anticipate the big slice the taxman would take," she said.
Tjaart Kruger, the financial director of Consumer Assist, said it was worrying that a year after the global economic crisis, people had still not learnt to budget and cut spending.
"We are concerned that some are taking economists' predictions that the economy is starting to recover as an excuse to start overspending.
"We need to remind consumers that economists failed to predict the global economic crisis and they may be too hasty in predicting a recovery now," Kruger said.
"Last week, the National Credit Regulator warned that the economy was still depressed and an average of 9 000 consumers a month were applying for debt counselling. Consumers (were advised) not to get into further debt and to be wary of taking out loans to pay off debt," he said.
Andre Snyman, chief executive of Consumer Assist, said debt counsellors were concerned that some consumers tried to abuse the National Credit Act, as those under debt review had a 60-day period in which creditors could not take legal action while a counsellor restructured their repayments.
"Some people renege on payments or don't wish to be under debt review any longer. This not only threatens their credit record, but creditors could come after them with the full might of the law." - Sapa
FOR FURTHER INFORMATION www.consumerassist.co.za 0861 21 22 23 debt counselling call centre
Andre Snyman - CEO - Consumer Assist
aurelia.espag@consumerassist.co.za / 011 654 6018 (Languages: English, Afrikaans)
Source: Pretoria News
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