Debt relief for some as controversial Bill signed into law

File: President Cyril Ramaphosa has signed the controversial National Credit Amendment Bill into law.

File: President Cyril Ramaphosa has signed the controversial National Credit Amendment Bill into law.

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JOHANNESBURG - Some relief for over-indebted South Africans who are trapped in inescapable debt.

President Cyril Ramaphosa has signed the controversial National Credit Amendment Bill into law.

READ: South Africans debt-stressed: Ombudsman

It will allow debt of heavily indebted consumers to be extinguished, as long as they earn a gross monthly income of no more than R7,500.

Those indebted should also have unsecured debt amounting to R50,000 and found to be critically indebted by the National Credit Regulator.

The banking industry had previously pleaded for the Bill not to be made law.

READ: Bill could save over-indebted South Africans

It said banks would lose money writing off the debt.

It also warned that banks may tighten lending conditions, making it more difficult for the poor to secure credit.

Source
eNCA