Over-indebtedness is a significant problem in South Africa

Over-indebtedness is a significant problem in South Africa, with nearly 10 million consumers struggling with debt. According to the SA Human Rights Commission (SAHRC), over half of the country's credit-active consumers are over-indebted.

Key findings include:

* High Impairment: 50% of credit-active consumers have impaired credit records, being three months or more in arrears.

* Debt Stress: 15% are debt-stressed, with arrears of one to two months.

* Unsecured Lending: The rise of unsecured lending has provided access to cash but has also contributed to consumer indebtedness.

* Emoluments Attachment Orders (EOAs): These orders, used to deduct debt repayments directly from salaries, are a major concern due to a lack of judicial oversight.

* Access to Justice: Consent orders being signed outside the debtor's jurisdiction hinder access to justice.

* Micro-loans: While micro-loans initially aimed to help people escape poverty, they are increasingly used for consumption, leading to debt traps.

* Economic Impact:  A faltering economy exacerbates the problem, trapping consumers in a cycle of debt.