South Africans are grappling with mounting financial pressure as high-interest rates take their toll, according to data released by the National Credit Regulator (NCR).
Despite a slight uptick of 0.15% in new credit granted during the second quarter of the year, outstanding consumer credit balances have surged to an unprecedented R2.3 trillion.
This concerning trend is further underscored by a decrease of R215,000 in the number of credit-active consumers in good financial standing. The figures reveal a growing financial strain on many South Africans as they struggle to manage their debts in the face of rising interest rates.
Ngoako Mabeba, the NCR’s Statistics and Research Manager, commented on the situation, stating, “I think what we’re witnessing now is a culmination of the repo rate that has been steadily increasing for some time. It’s starting to filter down, and consumers are now feeling the pinch, with credit providers beginning to tighten their lending criteria.”
The data paints a grim picture of the economic challenges faced by South African households, with the burden of debt and high-interest rates exacerbating financial difficulties.
Impact of the high cost of living in SA:
