An influx of
debt review applicants is expected by debt councilors around the country for the month of July as many South Africans spend on good times instead of their obligations. Although consumer spending dropped last year, it has been and is expected to continue going up during the world cup.
Defaulting on your obligations, even if just once, can have serious consequences such as having your assets repossessed. Clients currently under debt review have been given a second chance, to throw it away on World Cup fever will see your creditors taking action against you.
Banks and other financiers are tightening the belt when it comes to irregular payers. Those clients under debt review who default on their new payment plan, will see the creditor cancel the review agreement and take the consumer to court, which they are well within their right to do. Only if consumer uphold their debt review agreements, are creditors prevented from taking legal action.
While banks and other creditors are suffering at the hands of the FIFA World Cup, the tourism industry is cleaning up. Visa card transactions show a spend of R1.33 billion between 1 June and 25 June– a 65 percent increase from the R810 million during the same period in 2009. An average of 51 000 transactions were made every day.
Visa spending includes UK, Australian, United States, France and Brazilian cards.