Middle-class South Africans face a crisis of soaring living costs for essentials such as groceries, fuel, medicine, education, transport and electricity, while the unrelenting high interest rates mean that home and vehicle loans are drastically more expensive to service.
The result is that more consumers are having to turn to credit to purchase essential goods and services, pushing many into deeper financial distress.
Tej Desai, the CEO of Alefbet Collections & Recoveries, says that with high interest rates, over-indebted consumers, especially those with a greater proportion of expensive, unsecured credit, will probably become more indebted as their debt-servicing costs remain high, alongside soaring living costs.
“The most important step for any indebted consumer who is struggling to make their debt repayments is to proactively engage with their credit providers. Ignoring…