Parliament has passed the National Credit Amendment Bill, simply referred to as the Debt Forgiveness Law and the ball is now in President Ramaphosa’s court to pass it into Law. This would give the National Credit Regulator the power to write off debts of up to R50 000. An estimated 9,4 million people may benefit.
Do you think this is a good Law? Would the effects be long lasting?
The South African banks and Retail industry are forcing all of us to get into debt we don’t need. When you want to buy a car or buy a home, you will NOT qualify for the home loan or car loan unless you have debt you don’t need e.g. clothing store account, personal loan, credit card, etc… This predatory credit scoring system is putting people into a lot of debt and over 10 million South Africans are blacklisted. Debt is addictive – you only need to be introduced to buying clothes, food and other staff on credit and after you have done it a few times, you might end up doing for the rest of your life and not even realise that it is not good for you
There is no reason to rate poorly those who would rather save and invest their money and only use credit for the things they cannot afford to buy cash e.g. a car or a home. A lot more needs to be done to ensure that we get South Africa out of debt. We also need an authentic debt and financial management course introduced in our schools and universities amongst other necessary measures to deal effectively with the high levels of debt in our county
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