New research from consumer credit reporting agency, TransUnion finds that eight in 10 South Africans say their household income has been negatively impacted by the Covid-19 pandemic.
TransUnion has initiated a survey of adults (18 years old and over) in South Africa and abroad to better understand the financial impact of Covid-19 on consumers.
The initial survey of 2,001 adults found that some generations, particularly Millennials (those born 1980 to 1994) and Gen X (born 1965 to 1979), have been harder hit financially by the Covid-19 pandemic.
Concern over ability to pay bills was highest among Millennials (92%) and Gen X (95%).
Of consumers who are concerned about paying their bills, 46% report that they will not be able to pay their utilities (electricity, water, etc.), 42% will not be able to make their rent repayment and 39% report that they will not be able to pay their cell phone bill.
Two in five (40%) people financially impacted by the pandemic said they had already reached out to companies they have accounts with to discuss payment options.
In response to the financial challenges caused by Covid-19, 29% of South African consumers said they planned to use their savings to pay current bills.
A smaller number (22%) said they would borrow money from a friend or family member.
Additionally, 27% of impacted consumers do not know how they are going to pay their bills or loans and 33% will only pay a partial amount that they can afford.