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The National Credit Regulator says the number of credit agreements entered into by South Africans increased by 6.66% quarter-on-quarter from 3.79 million to just over 4 million.
The NCR today released the Consumer Credit Market Report and the Credit Bureau Monitor, which are based on data from registered credit providers and credit bureaus respectively.
The report covers credit market information from April 2023 to June 2023.
"The total value of new credit granted increased by 0.15% quarter-on-quarter from R141.78 billion to R141.99 billion," the NCR said.
Significant trends from the report.
*The value of new mortgages granted increased by R2. 75 billion (6.09%) quarter-on-quarter and decreased by R9.69 billion (16. 85%) year-on-year.
*Secured credit, which is dominated by vehicle finance, decreased by R480.03 billion (1.06%) quarter-on-quarter, and by R153.55 million (0.34%) year-on-year.
*Credit facilities decreased by R1.14 billion (4.80%) quarter-on-quarter and by R1.66 billion (6.85%) year-on year.
*Unsecured credit decreased by R354.87 million (1.53%) quarter-on-quarter, and by R4.08 billion (15.14%) year-on-year.
*Short-term credit increased by R235.09 million (11.14%) quarter-on-quarter and by R156.06 million (7.13%) year-on-year.
The total outstanding consumer credit balances (or gross debtor's book) as of June 2023 was R2.31 trillion, representing an increase of 0.74% quarter-on-quarter and by 5.81% year-on-year.
Credit bureaus held records for 27.05 million credit-active consumers, which was a decrease of 0.05% when compared to the 27.07 million in the previous quarter. Consumers classified in good standing decreased by 215 482 to 17.03 million.
"In the worst-case scenario, consumers are urged to contact their nearest registered debt counsellors to seek help. Debt counselling is intended to assist consumers who are over-indebted," said Ngoako Mabeba, Statistics and Research Manager at the NCR.
"Over-indebtedness is a state where the consumer's income is not sufficient to cover all financial obligations and living expenses. A registered debt counsellor should be able to assist the consumer with budget advice and debt restructuring."
