Half of the country's 17million consumers struggle to pay off their debts - bank loans, bonds and shopping accounts - and this has harmed their creditworthiness.

Black marks have been made by credit bureaux against the names of more than eight million people because they failed to pay their accounts for three consecutive months.

Peter Setou, senior manager of the National Credit Regulator, said the recession had cost many people their jobs or cut their pay.

Since the National Credit Act was passed in 2008, 198000 consumers have applied for debt counselling, but of those only 57000 try to repay their debt.

Between 7000 and 9000 indebted South Africans, with an average of nine credit agreements each, apply for debt counselling every month, enabling banks and other institutions to recoup R250-million a month.

This is why the National Credit Regulator, the Banking Association of SA and the Debt Counselling Association of SA have joined forces to mount an awareness campaign to help people get out of debt.

The campaign, announced yesterday, will run until the end of the year. Setou said it aimed to address "adverse consumer behaviour trends" and promote a "better understanding of debt counselling, including expected conduct by consumers".

Many consumers thought applying for debt counselling was a free ticket out of their financial woes, and did not comply with repayment arrangements. Setou said the media campaign would publicise contact details for the National Debt Mediation Association's call centre, banks and other credit providers. Call-centre staff would advise on how to get out of debt.

Johan de Ridder, an African Bank investment executive and campaign spokesman, said two sets of audience had been identified: consumers who were debt-stressed but not yet under review, and others who had applied for debt counselling.

"We invite debt-stressed consumers to contact banks [about their] over-indebtedness before applying for debt counselling, and preferably before defaulting," said De Ridder.

Paul Slot of the Debt Counselling Association said debt counselling was not working well: "There are high levels of default by consumers and very few cases are being solved."