When it comes to debt in South Africa, statistics show that an alarming 8 million South African consumers are over-indebted. According to the Consumer Credit Market report, just over 70% of the average household income is spent on debts. This can be a dangerous economic situation for the country, as living standards are lowered and prices continue to climb. With the considerable amount of people in need of assistance with debt in South Africa, debt counselling has begun to emerge as an increasingly effective method for tackling debt. In fact, over 66 000 applicants are currently using a debt counselling service to surmount bad debt.