Indebtedness: Necessary Evil to Achieve Ambitions?

9 years, 3 months ago - February 24, 2012
The debt seems to grow in Mauritian society. The recent cases of homicide, attempted murder and suicide at Forest-Side Tengnah confirms this trend. What explains the phenomenal scale that takes the debt in our society?

According to the report "Managing Budgets and Household Indebtedness for Better Living" of the National Economic and Social Council (NESC), as of December 2011, several factors are leading to excessive debt over the control of family members: the poor health of borrower, broken family or job loss. 

However, this situation often arises from the consequences of deliberate actions of family members. Actions that the report said, could have been avoided if the heads of families had good judgment. Ironically, the blame for their misfortunes are frequently 'ugly one' temptations created by the "smart advertising" as well as credit facilities disguised supposedly beneficial to consumers.

"Associations for the protection of consumers continue to raise awareness of the decisions compared to targeted purchases. And this, despite attempts to influence their decisions. Marketing techniques to attract consumers have never stopped innovating to influence buyers, "the report said.

It also points out that excessive purchases can have severe repercussions on family relationships. They can affect the health of the borrower - the lead in the spiral of alcoholism, drug abuse and domestic violence - and can lead to suicide or divorce. 

It turns out that this is debt that would be the cause of family drama that occurred in Tengnah. Muthy Salim, president of the Movement Sale by Levy victims, confided that he was contacted by a relative of Nizam. But he was later to learn that he was confident he could get away alone, and did not want anyone's help. 

"If the family had sought help, this tragedy would never product. Nizam was proud. It is besides this, the real problem. It is the relatives who are paying borrowers. They must learn from this disaster. Turn inward does not help. That is why, on March 3, a large meeting will be held at 10 am at the center Social Mary Queen of Peace, on Sale by Levy ", highlights our interlocutor. 

Salim Muthy believes that the vast majority debt situations in Mauritius, from the fact that it is men who make all the decisions. 

"In doing so, they will not take the first opinion of the woman. If it criticizes the husband for his 'bad' decision, it can expect to be scorned or beaten, "he said. 

The situation with respect to debt is serious, he adds. Now even some of the middle class find themselves in such a situation, and therefore, become victims of Sale by Levy. 

"There are between 30 to 40 new cases of Sale by Levy who are treated in court every week, so an average of 175 cases per month. And in most cases, these are people who do not understand the Sale by Levy. Some know they can knock on the door of the associations concerned, "said S. Muthy. 

2012 is the year of over-indebtedness, it adds. He said the wages earned by Mauritians are hardly sufficient. 

"The cost of living has shot up. The majority of those who get into debt are people who are self-employed. They have no fixed salaries, "he says. 

It's not a shame to be in debt 

"Is likely to have more family dramas, related to debt in the future, as long that the authorities do not show some flexibility to borrowers who are in a deadlock. "So says Cangayen Pillay, President of the Association of Victims of Sales at the helm. 

"Some of our banks are outside the law protecting borrowers and head straight for the seizure. However, this does not happen like that. That said, it is necessary that consumers do not buy excessively, "he said. 

Cangayen Pillay argues that "it's not a shame to be in debt. Everyone is in one way or another. But talk to avoid tragedy." 

We must be attentive 

Denis de Spéville, president of the Association for the Protection of borrowers abused (the APEA), draws attention to the rioters."They are to be repaid first. Then, there is no document attesting transactions. Borrowers may be trapped, "he said. However, it holds that attitudes are beginning to change thanks to Maurice to work done by associations for consumer protection. 

They begin to be affected by debt and its consequences. "If it is a concrete and in the long run, we can go into debt. But of course, make sure you arrive comfortably to repay its debts. Banks and financial institutions must ensure that they do not lend to people who can not afford to repay, "says Denis Spéville. Note that the APEA will soon come with a project of listening to consumers. "Listening is the first support they can get because sometimes they can not tell their spouses / relatives. They feel alone, "he says.

Ibrahim Koodoruth, sociologist: "Completing the project without a loan, it is possible" 

How do you explain that indebted people are legion? 

It is, nowadays, soon influenced by the ease of having something even if you do not have money in your pocket. Moreover, we live in a materialistic world where the quality of life is measured in terms of material goods, instead of peace of mind. On the other hand, there is also a category of people who live from day to day. They borrow money to satisfy a need or desire. Not to mention that in the difficult economic environment, there are many job losses. The economic crisis and the liberalization of labor market may lead to a social crisis. 

Loans that are contracted to buy new, worth the shot? 

Not necessarily. Some things can be repaired and reused. However, we do not hesitate to replace the appliances with the last-cry. Even if it goes through a loan. Remember that aggressive marketing and the range of payment facilities are magnets. 

Today, is it possible for someone who earns very little money to complete projects without resorting to loans? 

Why not? This is in order to realize their dreams as soon as possible that one is forced to borrow. However, the borrower must take into account his current situation. Ideally, set goals, or complete the project in the long term. 

Given the factor 'dear life', as claimed by many consumers, can be done to achieve its savings plans?

Of course. It's about attitude. Government and associations for consumer protection must be committed to consumer education so that it does not go into debt. A situation that, in the long run, may lead us to a dead end as Greece. 

The law protects borrowers 

The borrower's Protection Act of 2007, says Ms. Siv Potayya, has established safeguards designed to protect those who living beyond their means. According to Article 12 (1) of BPA, a creditor can not accept the marital home as collateral if the spouse does not consent and that, regardless of the matrimonial property (considering that this legal provision is inconsistent the free disposal of the husband who chose the regime of separate property). 

"Even so, this law is still establishing a better framework for before the commencement of the BPA, March 7, 2007, banks and financial institutions had, each, how they lend money. Then, the law provides some latitude to debtors in case of inability to pay, "said the lawyer.  

But beware! This law governs only loans up to Rs 2 million, he says."Maybe it is time that the Commissioner put in place a cell whose objective is to better disseminate information about the debt in public? "Asks he. He concedes, moreover, that some consumers are unaware of the existence of BPA, which is why they do not enforce their rights thereto. However, he says, if some banks go beyond the BPA - as estimated in some circles concerned - it is rather negligently and not intentionally.  

There is no 'gift' 

Suttyudeo Tengur, president of the Association for the Protection of the Environment and Customers (APEC), is sounding the alarm. He says the Mauritian society tends more and more towards consumption. He said consumers are easily influenced by advertisements without taking into account their purchasing power. "Dealers have to sell their products, that's why they offer all kinds of facilities to their customers. One of the bait is the 'gift'. It is important that consumers know that no 'gift' is a gift as such. They pay for the 'gift', "he adds.   

Debt must be a split decision

"Decisions on the debt must be shared with family members. After the crime that occurred recently at Forest-Side, it is high time that people realize. "At least that's what Jayen Chellum but esteem, general secretary of the Consumers' Association of Mauritius (PMAC). For the latter, there is no doubt that the Mauritian living beyond its means. "The situation could worsen if we do not take the usual precautions. Especially in these times of economic crisis leading to job losses, debt could double, "he warns. 

Testimonials

Case of Padayachee 

Her case was, at the time, toured all editors. Her name is Sheila Padayachee, an early victim of the sale at the helm. Born into a wealthy family, the latter, based in Valley of the Priests, was a bank loan for a proposed supermarket, in the same neighborhood of Port-Louis. She will succeed initially to repay its debts to financial institutions. However, this stability will be of short duration. Her business will experience more downs than ups. She and borrow money from a breaker, in order to boost his business. The deed mentions a repayment period of one year. 

But the thug his promise to repay over a longer term. A promise she will not hold because she will ask for money after some time. Mashed debts, Sheila Padayachee will know how to get out. She will lose all his property and his house and supermarket in 1997. However, she will be allowed to stay on the ground that was once his. A shack will be built. One of the creditors agree to sell to the victim 50 yards on the ground. But Sheila Padayachee will not even buy 50 yards in question. In the meantime, this mother will lose her daughter. Moreover, it will leave the life, no more feeding occurred since the financial problems and change in lifestyle. 

The planter unfortunate 

Paramahansa Joonucksingh, 61, also had the misfortune to lose his house. He spent ten years in a watercress in Le Val. The owner asked him one day to vacate. Since this was the only work he could do, he is determined to find another place to plant the watercress. He joined as a co-operative Midlands where he received a farmland. However, it took a loan of Rs 400,000. However, with the Midlands Dam project, it still took our friend to clear out this time to Plaine-Sophie. He met new problems and found himself on land owned by Mon Désert Mon Trésor where his father had worked for over thirty years. 

A few years ago, he was again ordered to leave. With nowhere to work, the sexagenarian found himself unable to pay its debts. The house of the father of five was seized. He now lives with her children in Plaine Magnien-. Note that this is the same house that was sold at the helm. Her children have acquired to the purchaser. What was the surprise of Mr. Joonucksingh the creditor to receive a letter asking him Rs 47,000. "This, when all debts had been paid," he says. He has already asked for help on this.

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