People must tighten their belts and make arrangements before they drown in debt, warns Credit Information Ombudsman Manie van Schalkwyk.
"The cost of living has become a serious reality. This is no longer a matter affecting low-income consumers only. It is an all-level consumer concern."
Last week, Reserve Bank governor Tito Mboweni said the inflation outlook had deteriorated and monetary policy would tighten if he had his way - paving the way for another interest rate hike.
And with living costs getting another push from Eskom rates, Van Schalkwyk says it's time to get back to basics.
"Budget. This might not seem like a viable solution, but I believe it is a starting point."
The office of the credit information ombudsman resolves complaints from consumers and businesses that are affected by credit information.
Van Schalkwyk said budgeting helped identify areas of expenditure to minimise.
He said new property valuation regulations had also had an impact on the debt crisis. The easy credit frenzy before the implementation of the National Credit Act in June had caused people to take on more credit than they could repay. In that sense, the act had added to the debt problem.
And instead of finding ways of saving and surviving with what they have, consumers might be tempted to buy on credit and end up being worse off.
He said people who found themselves "between a rock and a hard place" because of the credit squeeze should act without delay.
"Speak to the credit provider immediately. Make new repayment arrangements. Confirm these in writing and keep a copy for your records," said Van Schalkwyk.
"If you don't make payments or stick to the arrangements, you will be listed at the credit bureaux as a poor payer, even if you skip only one month."
Debt counselling is an option for indebted consumers. According to the National Credit Regulator, consumers may apply to a debt counsellor to be declared over-indebted.
The magistrate's court may in turn re-organise the consumer's debt.
For more information visit www.ncr.org.za or contact the national credit regulator's office at 0860 627 627.
The credit information ombudsman can be contacted at 0860 662 837 or ombud@ creditombud.org.za
More information and links to other organisations in the industry can be obtained at www.creditombud.org.za