New research published by financial services group, Old Mutual, shows how many South Africans are adequately prepared for a financial crisis.<\/p>\n
The survey revealed that half of the households covered would be able to find money to cover R1,000 in unforeseen expenses, while only a quarter could manage R5,000, with the rest turning to debt accrual.<\/p>\n
Alarmingly, however, one third of the households said they could not even borrow enough money to cover R10,000 in unforeseen costs.<\/p>\n
Broken down further, for those households earning between R6,000 to R19,999<\/strong> 57% would need to borrow the funds to cover a R10,000 shock, while for those households earning between R20,000 to R39,000<\/strong>, the percentage drops to just under half.<\/p>\n According to financial services firm, Alexander Forbes, what the numbers suggest, is that there’s a disturbing number of employees in the country that are ‘just one destabilising shock away from hardship’. The lower the income, the more pronounced the hardship is likely to be.<\/p>\n Ability to handle expenditure – R6,000 to R19,999 monthly household income<\/strong><\/p>\n Ability to handle expenditure – R20,000 to R39,000 monthly income<\/strong><\/p>\n Alexander Forbes noted that a US survey showed that 47% of Americans would be unable to pay for a $400 emergency without borrowing or selling something.<\/p>\n This is what stressed-out South Africans are willing to sacrifice to cut costs<\/strong><\/a><\/p>\n Debt shock for South Africans as tough economy bites<\/strong><\/a><\/p>\n One graph shows how bad South Africa\u2019s consumer debt is<\/strong><\/a><\/p>\n\n\n
\n <\/th>\n R1,000<\/th>\n R5,000<\/th>\n R10,000<\/th>\n<\/tr>\n \n Pay with a credit card<\/td>\n \u00a07%<\/td>\n \u00a06%<\/td>\n \u00a03%<\/td>\n<\/tr>\n \n Personal loan<\/td>\n \u00a03%<\/td>\n \u00a026%<\/td>\n \u00a051%<\/td>\n<\/tr>\n \n Borrow from friend\/family<\/td>\n \u00a031%<\/td>\n \u00a017%<\/td>\n \u00a02%<\/td>\n<\/tr>\n \n Borrow from my stokvel<\/td>\n \u00a08%<\/td>\n \u00a09%<\/td>\n \u00a04%<\/td>\n<\/tr>\n \n Use savings<\/td>\n \u00a050%<\/td>\n \u00a034%<\/td>\n \u00a08%<\/td>\n<\/tr>\n \n Could not handle it<\/td>\n \u00a00%<\/td>\n \u00a05%<\/td>\n \u00a030%<\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n Will have to borrow<\/td>\n 42%<\/strong><\/td>\n \u00a052%<\/strong><\/td>\n \u00a057%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n \n\n
\n <\/th>\n R1,000<\/th>\n R5,000<\/th>\n R10,000<\/th>\n<\/tr>\n \n Credit card<\/td>\n \u00a025%<\/td>\n \u00a027%<\/td>\n \u00a013%<\/td>\n<\/tr>\n \n Personal loan<\/td>\n \u00a01%<\/td>\n \u00a011%<\/td>\n \u00a034%<\/td>\n<\/tr>\n \n Borrow from friend\/family<\/td>\n \u00a012%<\/td>\n \u00a012%<\/td>\n \u00a09%<\/td>\n<\/tr>\n \n Borrow from my stokvel<\/td>\n \u00a05%<\/td>\n \u00a08%<\/td>\n \u00a05%<\/td>\n<\/tr>\n \n Use savings<\/td>\n \u00a051%<\/td>\n \u00a039%<\/td>\n \u00a025%<\/td>\n<\/tr>\n \n Would not be able to cover it<\/td>\n \u00a00%<\/td>\n \u00a02%<\/td>\n \u00a011%<\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n Will have to borrow<\/td>\n 18%<\/strong><\/td>\n \u00a031%<\/strong><\/td>\n \u00a048%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n More on debt in South Africa<\/h3>\n