The National Debt Counselling Association says debt counselling remains one of the most effective ways for over indebted consumers to protect their assets and regain financial stability.
South African households are facing mounting financial pressure as rising interest rates, inflation and increasing living costs continue to erode disposable income, prompting debt experts to call for greater awareness of debt counselling as a practical solution for struggling consumers.
The latest increase in the repo rate by the Monetary Policy Committee has added to the burden facing many households. In late May, the MPC raised the repo rate by 25 basis points to 7%, pushing the prime lending rate to 10.5%.
The decision was driven by inflation concerns, geopolitical risks linked to conflict in the Middle East and fears that rising costs could become entrenched in the economy.
According to National Debt Counselling Association chairperson René Moonsamy, the current environment is leaving many consumers increasingly vulnerable.
