An average local consumer has several loan agreements to their name. This includes everything from vehicle purchases to personal loans and credit cards used to pay deposits or manage day-to-day expenses, says Bongani Gwexe, the supervisor industry analyst for Statistics at the National Credit Regulator (NCR). [...]
The debt levels vary significantly across income bands, but what debt councillors consistently see among consumers who approached them was that debt is rarely isolated-it is layered, says René Moonsamy, the chairperson of the National Debt Counselling Association (NDCA).
The organisation which represents some debt counsellors operating in South Africa says that in the lower-income band, the average consumer tends to carry heavy unsecured debt.
It says this includes payday or short-term loans, retail store accounts for clothing and furniture, and revolving credit facilities. “These debts often accumulate quickly because they are used to cover discretionary spending and living expenses,” says Moonsamy.
Read the full article on IOL.