"Both employees and their employers should be concentrating on a combined effort of promoting wise financial management. Our organisation is continually educating and informing consumers/employees on the role of the National Credit Regulator, objectives of the National Credit Act, consumer rights under the NCA, debt counselling, credit bureaux, budgeting, dealing with over-indebtedness etc. However, our success will be limited if there is no active support and participation from both employers and their staff."
According to the NCR's statistics, there are over 18 million credit active consumers, of which 45% have impaired records. A consumer is classified as having an impaired record if he/she has three or more payments in arrears, or has an "adverse listing," or a record that reflects a judgment or an administration order.
Setou strongly advises employers to include educational programmes on managing finances and dealing with over-indebtedness into their organisations' wellness programmes. Employees are also urged to make use of these services offered by employers.
"It is common knowledge that stress-related illnesses have a markedly negative impact on productivity, therefore employers should assume the responsibility of advising their employees on where they can obtain assistance. When, for example, employers note a rising incidence of garnishee orders within the organisation, they should take proactive steps to point employees in the right direction for advice and counselling."
The first step is to approach their credit providers and negotiate lower instalments. In most cases, credit providers are willing to assist. If this fails they need to contact a registered debt counsellor and if they are not familiar with any debt counsellors, employees can contact the NCR on +27 (0)86 062 7627 to locate a debt counsellor in their area.
