Struggling with debt and looking at borrowing? You’re not alone…
The latest Consumer Credit Index from TransUnion shows that while South African credit health has improved slightly, consumers are feeling the pressure and turning to urgent credit sources to keep afloat.
The CCI measures the state of South African consumer credit health, looking at the state of credit defaults, borrowing, cash flow and debt among citizens every quarter.
The group noted that in the second quarter of the year, there were fewer defaults on loans, with repayment being “remarkably resilient”, given the tough economic circumstances in the country.
Not a good story (even if #1 keeps telling you it is so)
However, across the other metrics, the story is not a good one.
According to TransUnion, there has been a marked increase in ‘distressed borrowing’ – turning to credit cards and store cards to make purchases – over the past three months.
“This measure has now been in a deteriorating trend for a year as households access credit to maintain living standards,” the group said.
This is further reflected by household cash flow data, which has also been on a weakening trend, and has now reached its lowest levels since the beginning of 2010.
According to the group, of the 56.4 million accounts measured in the index, 2% – or just over 1.05 million – are three months in arrears on repayments.
South African consumers have an estimated aggregate annual household disposable income at R1.95 trillion, 76.2% of which is estimated to be bank debt.
Get on top of your debt by setting up a free budget planner
Get Organised – it’s the best starting point and will help you to see the big picture on how to make smart money choices
Related – Do you really need “stuff”
Get a firm grip on your income and debt – use the FREE Life Planner, it’s easy to use, easy to set-up and simple to maintain. no bank account details, no pin numbers, no security concerns, just the info you need to maintain a responsible budget .
More and more taxes Finance minister Pravin Gordhan is under pressure to find an extra R28 billion in taxes – which is likely to come out of the pockets of South Africans who are already amo... Read more
New York – CNN Are you able to save for an emergency? If you were suddenly hit with a $500 (R7 000) unexpected bill, would you be able to cover it? Nearly six in 10 Americans don... Read more
Should I save or invest? … and what is the difference? People often ask me whether one should save or invest. So what is the difference? When you save money you put it in a savings acc... Read more