DEBT COUNSELLING SERVICES IN GAUTENG (SOUTH AFRICA): COUNSUMERS’ PERSPECTIVE

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Abstract

Debt counsellors are receiving a high number of applications from over-indebted consumers on a monthly basis. This paper investigates the effectiveness of debt counselling on consumer financial wellness. Three hundred consumers were surveyed and a response rate of 61% was achieved. Data was analysed using descriptive statistics. There was no evidence that consumers who received debt counselling improved in their financial standing. The article concluded that though debt counselling is important, it does not necessarily improve the financial prosperity of over-indebted consumers. The paper recommends that financial management education be part of the intervention methods that debt counsellors use when they counsel their clients. Consumers should be introduced to personal financial management education at an early age of their life.

Key Words: Over-Indebtedness, Financial Management, National Credit Act, South Africa

How to cite this paper: Masilo, K. H. (2014). Debt counselling services in Gauteng (South Africa): Consumers’ perspective. Journal of Governance and Regulation, 3(3-1), 120-127. https://doi.org/10.22495/jgr_v3_i3_c1_p5