MARK BARNES: Debt relief an unusual but necessary short-term reprieve
It will square up the books, but the long-term solution is job creation
The National Credit Amendment Bill was signed into law by President Cyril Ramaphosa about a month ago. Essentially it makes provision for those earning less than R7,500 a month with unsecured loans of up to R50,000 to be forgiven their debt, and start again. In some ways, it couldn’t have happened soon enough.
More than 10-million South Africans have impaired credit records. That’s about 40% of all active consumers. Something had to give.