President Cyril Ramaphosa recently signed into law the controversial National Credit Amendment Bill, which is geared to provide relief to over-indebted consumers. The “Debt Intervention Bill”, will enable low-income workers to extract themselves from debt through a process of debt restructuring if they earn a gross income of R7 500 or less per month, have unsecured debt of R50 000, or have been found to be critically indebted, but fears have been raised that it could in fact drive up the cost of loans and limit access to credit. Tabloid Newspapers took it to the streets to hear what others thought.

Nicky Scheepers
I think that this is a catch 22 situation, this relief will benefit the ones earning less, and also put them in a tight situation. Despite this being a great relief for them, it might affect their credit record for when they probably need to take out a loan in the future. As life is unexpected and you never know what may happen. There are situations in life you can’t get out of and you will need to take out a loan and this bill will make it harder for them to tap into that money.
Kelsie Blake
This system makes it so easy to get yourself into the same situation again. I think a debt help plan would be better, where people can get a portion of debt relieved from them and pay the rest off themselves. In this way they will still be able to take out loans, as it will prevent them from being seen as a high risk borrower and show that they are able to pay off their expenses.
Gabi Manono Nkabinde
This bill has positives and negatives. You will be debt free but you won’t be recognised to afford a loan, because the government had to clear you and this might go onto your track record. My question would be, has the government created a system that will also clear them from their track record so that they will be able to take out a loan, or will some loan firms be willing to accommodate them. Also, what would be the payment procedure and the interest rate be as interest rates currently are quite ridiculous. These are aspects that we need to carefully consider first.
Travis Smith
I don’t think this will add to the demise of the economy, as once those rands have been scrapped from people earning less, they will have more money to spend on the economy. For example, if they pay back a loan of R2000 a month , that money will go back into the economy for buying groceries and other essentials. It won’t be to the demise of the economy, the demises of the economy is how we are R17 to the dollar and R19 to the pound. I think that scrapping the actual debt from lower income earners is a very good idea, so that can they can spend more money on the things they need. Like food on the table for their children and paying school fees.
Kim Mjwara
This bill is only helping the rich getting richer and the poor getting poorer and ultimately benefiting the capitalism system. It won’t be to the benefit of the underprivileged, as they will be the ones suffering at the end of the day. More so because of this new bill, they won’t be able to take out loans and where does this leave them.