Business
Consumer Credit Index rises slightly in first quarter─── OLEBOGENG MOTSE 15:27 Wed, 06 Jun 2018
Credit reporting agency TransUnion’s Consumer Credit Index (CCI) increased by one point in the first quarter of 2018, amidst very challenging times for the South African consumer.
Vice President of Financial Services at TransUnion, Stephen de Blanche, says the Index – which indicates consumers’ credit health - increased to 56. The index is measured on a scale of 0 to 100, and the latest number is indicative of an improvement in the credit health of households amid difficult economic circumstances. These include the 1% increase in Value-added Tax (VAT), a contracting GDP, a weaker rand and petrol price hikes. De Blanche told OFM News while South Africans remain heavily indebted, people’s financial conditions improved slightly in the first quarter.
De Blanche says they have seen a decline in the number of consumers who are moved into three-month arrears - default on making payments in the first three months – by 8,3%. They have seen an increase in people requesting extensions of credit limits, which reveals South Africans are leaning heavily on their credit cards.
OFM News
