Unlicenced debt management companies are targeting consumers struggling to deal with their finances.

South Africa's economy is in recession for the first time in 17 years and cash-strapped consumers are turning to unlicensed credit rescuers who end up stealing their money.

Debt Help Financial Service's Levin Born has said debt-ridden consumers are falling for the quick fixes these companies promise.

"It is desperation. You try to do anything you can to be able to get some sleep at night. This can be a very stressful position, people don't want to lose their homes, people don’t want to lose their cars."

Born said these companies use bulk SMSs to lure people in.

"They will understand that it’s a numbers game so they send out a million SMS's and know that at least 1000 will call because 1000 people are blinded so much and are so desperate that they won’t bother verifying credentials."

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