National Credit Act 34 of 2005 came into
full effect on 1 June 2007. The Act was
designed to regulate the credit industry
and to protect the consumer. More
importantly, there is provision for the
Debt Restructuring of consumerís monthly
budgets in the event of
Over-Indebtedness. In terms of the Act,
all Debt Counselors are regulated by the
National Credit Regulator (NCR), a
department within the Department of
Trade and Industry.
Being over indebted simply means your
expenses are greater than your monthly
income. In other words, you cannot
afford to pay all your debt.