{"id":703249,"date":"2023-07-12T06:00:00","date_gmt":"2023-07-12T04:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=703249"},"modified":"2023-07-12T08:07:13","modified_gmt":"2023-07-12T06:07:13","slug":"south-africans-are-getting-buried-and-many-are-digging-even-deeper","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/703249\/south-africans-are-getting-buried-and-many-are-digging-even-deeper\/","title":{"rendered":"South Africans are getting buried – and many are digging even deeper"},"content":{"rendered":"\n

South Africans are struggling to cope as financial pressures increase, with many turning to debt facilities.<\/p>\n\n\n\n

According to clearing house BankservAfrica<\/a>, salaries over the past five years have grown by 22.8%, with the average nominal pay increasing from R12,573 per month in February 2018 to R15,438 in February 2023.<\/p>\n\n\n\n

However, the Consumer Price Index (CPI) rose by 26.6% over the same period, showing that nominal take-home pay lagged behind inflation. <\/p>\n\n\n\n

This, essentially, means that South Africans have gotten poorer over the last five years. <\/p>\n\n\n\n

Moreover, debt levels are increasing as South African consumers tackle challenging financial times, TrendER\/infoQuest, an online research company, said. <\/p>\n\n\n\n

TrendER\/infoQuest interviewed 300 South Africans in June 2023, with the results compared to a year prior. <\/p>\n\n\n\n

Overall, there have not been any major changes in satisfaction levels in terms of financial situation, with roughly one in two consumers giving a rating of 5 or less – indicating dissatisfaction. <\/p>\n\n\n\n

Only 13% of respondents in 2023 said that their financial situation was very good\/excellent. <\/p>\n\n\n\n

Those over 50 years old were also less satisfied with their financial situation compared to a year ago, as this age category includes retired people on a pension or are feeling the effects of the increase in the cost of living in general. <\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Rather unsurprisingly, as income increases, the proportion of those dissatisfied with their financial satisfaction declines. <\/p>\n\n\n

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\"\"<\/a><\/figure><\/div>\n\n\n

Rising debt <\/strong><\/p>\n\n\n\n

TrendER\/infoQuest said that various forms of credit facilities were accessed by consumers over the last six months, with personal loans, credit cards and home loan excess funds all being used. <\/p>\n\n\n\n

This indicates that consumers are facing financial constraints as consumers need to access funds. <\/p>\n\n\n\n

Increased my credit card limit<\/td>55%<\/td><\/tr>
Taken money from the excess in my home loan<\/td>33%<\/td><\/tr>
Personal loan from a financial institution<\/td>29%<\/td><\/tr>
Personal loan from family\/friend<\/td>21%<\/td><\/tr>
Personal loan from a mashonisa<\/td>12%<\/td><\/tr>
Personal loan from a stokvel<\/td>12%<\/td><\/tr><\/tbody><\/table><\/div>
Source: TrendER\/infoQuest<\/figcaption><\/figure>\n\n\n\n

Those in the 35-49 year age category accessed more credit in the last six months than those in other age categories <\/p>\n\n\n\n

In addition, these financial constraints are further evident in consumers struggling to pay off their debt. <\/p>\n\n\n\n

With the recent interest rate hikes, nearly 3 out of 5 homeowners said that they were struggling to pay off their monthly instalments. Consumers are also struggling to pay for petrol and groceries: <\/p>\n\n\n\n