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‘Consumer debt cases on the rise’

The number of consumer debt cases handed over to collectors has increased, the NDMA revealed.

South African currency. Picture: Taurai Maduna/Eyewitness News

JOHANNESBURG - The number of consumer debt cases handed over to collectors has increased, the National Debt Mediation Association (NDMA) revealed on Friday.

The association said the number of consumers who have been unable to service their debt increased to 9.2 million in June, compared to 9.05 million in the previous quarter.

The drop was attributed to high levels of unemployment, combined with heightened levels of real inflation.

NDMA CEO Magauta Mphahlele said the number of consumers in good standing has fallen to 10.38 million.

"What is of concern is that we have more than 3 million people that are in the category of being more than three months behind in payments. These people are more vulnerable to legal action."