The latest data from the National Credit Regulator (NCR) shows that South African consumer debt has increased to R1.63 trillion in the second quarter of the year.<\/p>\n
Worryingly, despite a majority of credit active consumers are in good standing with debt payments, almost 45% are struggling to meet their repayments.<\/p>\n
According to data from debt management firm, Debt Rescue, in August, consumers owe as much as three quarters (75%) of their monthly pay to creditors.<\/p>\n
Over 56% and 58% of consumers struggling to pay off home loans and credit card debt, respectively, increasing the need for debt counselling, the group said.<\/p>\n
Putting south Africa’s consumer debt into perspective, the amount equates to $118 billion – this is larger than the total GDP output of some countries, such as Angloa ($107 billion), and in range of Morocco ($130 billion).<\/p>\n
The amount is equal to about a third of South Africa’s GDP output, which is at around $350 billion (World Bank data, 2014).<\/p>\n
South Africa’s debt data at a glance.<\/p>\n
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