Do you have a little voice in your head that tells you your massive debt problem is not your fault? If that voice is not the same one that continuously encourages you to splurge on shiny accessories and the latest gadgets, it may actually have a point.
The National Credit Act (NCA) requires banks to ensure that your debt repayments and minimum living costs are less than your monthly income before they give you a loan. Even though there is no specific formula used to determine whether or not a lender can afford a loan, you have to provide evidence that you have enough disposable income to repay the debt. If you cannot prove that you can afford a loan, and you are still given one, you are a victim of reckless lending.
If you are a victim of reckless lending, and you can prove that the company that gave you credit did so without ensuring that you can afford it, contact a registered debt counsellor who will investigate the matter and advise you on the best steps to take. If the counsellor thinks that you have a solid case, it will be referred to a magistrate’s court in order to determine if your loan can be written off.