South Africa
Consumers ‘overstretched’ as debt counselling increases─── 08:11 Mon, 22 Aug 2022
New data shows more South Africans are seeking financial help amid the combined pressures of increasing interest rates, rising inflation and a diminished ability to borrow.
According to DebtBusters' index for the second quarter of 2022, debt counselling increased by 17% compared to the same period last year.
Consumers applying for debt counselling are spending about 63% of take-home pay to service their debt.
Head of DebtBusters, Benay Sager, says it's a positive thing that more people are seeking help to stay afloat.
"It's very clear that a lot of consumers are going home with less and as a result, this is putting a restriction on the economy.
"Furthermore, as a result of this, more consumers are needing to tap into unsecured debt to supplement their incomes.
"That is overstretching particularly the income group that is taking home somewhere between R10 000 and R20 000 a month.
"We've found that that group is under a lot of financial pressure.”
