South Africans seeking debt review are committing nearly 60% of their net income to unsecured loans alone, before accounting for home or vehicle repayments.
According to new data from the South African Financial Pressure Index, which surveyed over 1500 applicants, higher earnings provide little shield against distress: one in five applicants earns over R15 000 a month, and one in eight brings home more than R20 000.
Joining us to break down these figures and what they mean for consumers is Leonie van Pletzen, CEO of the Credit Association of South Africa (CASA).
For more news, visit sabcnews.com and #SABCNews on all Social Media platforms.
It's all of the above, so sad that we have no trains as before to transport the goods, our gov has no will power to fix our country or the expertise to do it, there's Pothole petrol which also fixes potholes, why not get them?
On other news
https://youtu.be/sRC0ZyHvh78?si=2FbAekj5f_RKZOTR
Who's fooling who
Let's see how millionaires & others are doing. I'm betting they have more debts than we might think.
Anc anc anc anc
Cost of living is out of controll and banks charge what they want In interest and the consumer sits with all the bills and consequences
How are these people middle and upper earners. R20 000 p.m is peanuts.
Transport fees are up, fuel is up, electricity tariffs are continuously being increased, food prices are out of hand etc.
You know when I saw that it's crazy was when I saw that I couldn't afford an Xbox second hand Xbox from these pawnshops ????????
Not tranna be funny but having your own garden and this whole pro natural vegan thing helps
This has been the case now come on…. The new iPhone out
Never take debt review, you will be phucked
Because everyone and their mother wants to drive a Hilux. Sorry I meant "needs" to drive a Hilux.
Credit providers want to help ????????
I earn R950 215.36 after tax, but I don’t owe anything. Debt Review | Middle and upper earners trapped in debt continue, apparently I am trapped in a debt that does not exist, which is impressive because usually debt requires the small detail of actually owing somebody money.
Every month my salary enters my account looking very confident, and then I look at my bank balance and think, “Who is this money and why is it here?” The bank also seems confused because according to the headline, I should be somewhere crying about repayments while I am busy owing absolutely nobody.
I tried to find my debt so that I could review it, but there was nothing to review. I checked under the bed, inside my wallet, behind the fridge and even checked my old emails. Still no debt. At this point, I suspect my debt has been avoiding me because it knows I am ready to confront it.
Debt Review says middle and upper earners are trapped in debt. I am an upper earner apparently, but the only thing trapping me is the responsibility of deciding what to do with R950 215.36 after tax. This is a serious problem because there are only so many times one can count the money before becoming bored.
I called myself into a meeting and asked, “Why are we not in debt?” Nobody answered. The meeting was immediately postponed to next Tuesday. I then created a spreadsheet called “My Massive Debt,” but the spreadsheet had nothing inside it except the words “No Debt” repeated in three different cells.
Perhaps I am doing debt wrong. Maybe I need to borrow money first so that I can understand the article. Should I take a loan just to become qualified for Debt Review? Should I buy something I don’t need, owe someone I don’t know, and then suddenly everything will make sense?
The headline says people are trapped in debt, but I appear to be trapped outside of debt. I am standing at the debt gate knocking politely, but nobody is opening. I even brought my salary as proof of entry, but the debt security guard said, “Sir, you are not on the list.”
So here I am, earning R950 215.36 after tax, owing absolutely nothing, and somehow still worried that I might be missing the debt. Maybe the real debt was the confusion we created along the way. Or maybe I should just stop reading headlines and go buy groceries before my imaginary creditors arrive.
In conclusion, I have no debt, no debt review, no creditors chasing me, and no idea why I am even part of this conversation. If anyone finds my missing debt, please return it to me immediately because apparently I need it to complete this story.
There will come a time where the ordinary citizens will eat the rich. We can no longer afford to live with this economy
Everywhere I go I see loan lenders/sharks especially in malls based in impoverished communities which creates a vicious cycle preying on people.
Not sure who she represents, but it certainly seems as though she is favouring credit providers in this interview.
Yes, South Africans are desperate, and many take on debt they ultimately cannot afford. However, credit providers registered with the NCR are continuously extending credit to consumers who cannot afford it, despite the fact that they are supposed to be the guardrails.
I personally continue to receive calls offering me credit that I know, as a matter of fact, I cannot afford. There have even been occasions where I have taken short-term credit knowing that I would receive a lump sum later to cover it — income that would not have been reflected in my application because it was not guaranteed. Yet I was still approved for the credit, despite the fact that I clearly could not afford the repayments based on my existing income.
At some point, we need to acknowledge that the responsibility cannot rest entirely on consumers. The regulators need to crack down on irresponsible lending and tighten the rules around affordability assessments. If credit providers are meant to be the guardrails, they need to actually function as such.
We can't expect those who are often desperate and poor to self-regulate when survival is the only thing which they can focus on.
Viva ANC,Viva??????????
GUYS , dont EVER take debt review!! I was stuck for 11 years! and mind you the company was not registered so i had to seek another debt review company & it took me years to be removed. HORRIFIC!
never take debt review
its easier to get the votes of the lower income band than middle income so the ANC puts the most pressure on the middle to upper income earners
This current financial system was created by the Z10n1sts and it has to come crashing and burning down. Fiat Currency and Loans are all fake and traps to get you enslaved. Those who are in the know dont own Credit Cards and they are stocking up on XRP. DYOR (Do Your Own Research) , The banks arent your friends they are your Enemy.