The decision of the SA Reserve Bank's Monetary Policy Committee (MPC) to keep the repo rate unchanged at seven percent will not help indebted consumers, a debt counselling company says.

Luke Hirst, MD of Debtbusters, said while the MPC's decision on Tuesday was due to the precarious stance of inflation this did not help those who cannot afford to repay their debt and faced losing their homes.

"With an estimated one million jobs lost in the first three-quarters of 2009 and further retrenchments this year, some relief needs to be given to South African consumers," Hirst said in a statement.

The SA Reserve Bank (SARB) said household debt in November 2009 amounted to 47.1 percent of gross domestic product.

It also said 58 percent of credit active consumers were in arrears.

"That is 10 million consumers... this is exorbitant and only reiterates the need for further rate cuts."

With an average of 9000 consumers applying for debt counselling monthly, South Africans were suffering from debt, while the MPC's priority appeared to be sticking within the three to six percent inflation target, Hirst said.

"Although we appreciate this is a tough decision, it does not defer the need for relief from debt."

He extended an invitation to SARB governor Gill Marcus to come to his offices in Cape Town to speak to indebted clients and find out the reality of the average South African households' current financial situation.

"With all due respect, perhaps then the governor would think twice before keeping rates on hold."