Several South African credit providers have noticed an increase in the number of clients who are struggling with their debt following recent increases in the cost of living.
According to Danny Zandamela, chief executive of Ithala SOC Limited in KwaZulu-Natal, consumers are not out of the woods yet with October being declared a “notoriously high-risk” month by economists and the rand coming under considerable threat.
He said October began with an untimely fuel price hike and yet another increase is expected in November. The weak performance of the rand coupled with the country plunging into a technical recession in September has already raised the red flag on consumer spending.
Zandamela said a big concern is the lack of financial literacy among youngster which leads to poor financial choices, making them a target to fall into the trap of debt.
