Debtfree DIGI October 2015

NEWS CONTINUED
almost 2% from this time last year.
For the longest time in recent history, the
area of short term unsecured loans was the
cash cow which all credit providers were
chasing. When payments on debt dropped
off due to increased economic pressure, it saw
institutions like African Bank fall to its knees
and many retail furniture stores go under. As
credit providers “risk appetite” in this area
(unsecured lending) has diminished so has the
inability of consumers to actually afford the
loans they were asking for. Unsecured lending
is down by almost 10% compared to last year,
despite more applications than ever.
More and more consumers are entering the
debt review process and taking similar steps to
reduce their spending and focus on repaying
their debts. In the last few months over 139
000 consumers caught up with their promised
payments on their debt and got themselves
into a good standing at the credit bureaus.
While that may seem to indicate that SA
consumers are getting a handle on their debt,
the reality is that at the same time over 124 000
other consumers fell into serious arrears (of 3
months or more) and now face legal action
from their creditors.
Overall there has been an increase in the
amount of credit granted recently though
hundreds of thousands of consumers were
turned down when they applied for credit.
In total, credit providers handed out another
whopping R4.68 Billion Rand to consumers
during these months. This means that more
consumers are in debt than before and/or owe
more than before. While it is good news that
some consumers have managed to get on top
of their debt situation many, many more have
lost the plot entirely, and are now in serious
need of professional help (like debt review) to
try remedy the situation or face serious legal
action from their creditors.
JDG TRADING DEBT
REVIEW MAKING CHANGES
The JD Group consists of various companies
and retailers such as Joshua Doore, Russels,
Morkels, Bradlows, Price & Pride and the
former Electric Express. It also includes various
other brands such as Incredible Connection,
Hi Fi Corporation, Furniture Warehouse,
Sleepmasters and Barnetts. Many people don’t
realize that the giant group also own Penny
Pinchers, Timber City, Hardware Warehouse,
POCO, Rochester, E Best Buy Beds and Bed and
Lounge. As a result of their credit offerings and
large, diverse portfolio of brands, they have to
deal with a lot of debt review matters. Recently
JDG sent out a communication saying that they
were not going to be able to handle debt review
proposals over the next few days. Everyone
began to wonder what was going on. It has
now been revealed that JDG will be using the
services of award winning outsourced credit
provider debt review handling firm Consumer
Friend. Consumer Friend has won awards at
the last 2 annual Debt Review Awards in the
retail section for their fast turn around times,
good communication and excellent service.
They currently represent firms like Woolworths,
Truworths, RCS, Sanlam, Capfin, Forchini and
others. They have a good reputation industry
wide. Thus it is hoped that they will be able to
take their latest client (JDG) to new heights in
regard to debt review matters.