South Africa’s economic challenges have left many employees vulnerable to unscrupulous credit providers and overpriced debt collectors. According to the National Credit Regulator, South Africans are burdened with R2.3 trillion in debt, with an estimated one-third struggling to repay. Dubious lending practices exacerbate this crisis, misleading consumers into unnecessary loans and costly products.
In fact, debt counselling enquiries increased by 22% in the first quarter of 2024 compared to the same period in 2023, and 74% of South African employees assess their financial stress as medium to high.
Recognising the urgent need for intervention, NMG Benefits has partnered with EmpowerFS to develop a Financial Wellness Programme. Designed to assist companies in supporting employees facing financial difficulties, this innovative solution provides zero-cost protection from exploitative lenders together with hands-on counselling – at no cost to employers or employees or extra admin for HR teams.
“Our approach is proactive and practical,” says Lettesha Pillay, Head of Business Development at NMG Benefits. “By providing tailored financial guidance, consolidating debt, and enhancing financial literacy, we aim to empower employees to navigate financial challenges and secure their financial futures.”
This Financial Wellness offering open to employers, includes:
Protecting staff from unscrupulous credit providers and their costly, reckless lending practices
Defending employees against unethical and overpriced debt collectors
Advising on the most suitable credit options
Advancing zero-interest, zero-fees emergency cash assistance without any cost to the employer or employee
Determining whether staff are over-insured through multiple credit life or funeral insurance policies and consolidating these to save costs
Empowering staff with improved financial literacy to make better financial decisions
“This comprehensive offering will empower companies to better understand their employees’ financial stress and state, be more aware of the effects that financial stress has on overall work morale, and help shield employees from further financial exploitation,” says Pillay.
