Page 8 - Dainfern Precinct issue 3 2022

LIFESTYLE
HOW TO MANAGE
YOUR DEBTS
Rising costs are adding to the
pressure that SA consumers are
facing in trying to remain debt-free
ising interest rates and
an uptick in inflation are
squeezing South African
Rconsumers between the
proverbial rock and a hard place, as
the cost of servicing debts goes up
while the purchasing power of their
money declines.
Benay Sager, chairperson of
the National Debt Counsellors’
Association, says consumers’
disposable income has decreased
by a quarter since 2016 when the
cumulative effect of inflation over
the six years is considered. Data
South Africa’s target range, from
a low of 3,27% in 2020. However,
electricity and fuel are both expected
to increase astronomically, and that
will have a ripple effect across other
goods and services and increase
upward inflationary pressure.
“Over the past six years, the trend
has been that loan sizes have
increased, while the number of
from the National Debt Counsellors’ credit agreements have declined.
Association members shows that This means consumers are
consumers are borrowing to make up borrowing more per agreement
the shortfall. and reaching the point that they no
longer qualify for furtther credit. In
“Increasing inflation will exacerbate an increasing interest and inflation
the pressures consumers are under, rate environment, we expect this to
as the cost of debt is rising and intensify,” says Sager.
take-home pay does not stretch as
much as it used to. For consumers He says, however, that there is a
who have expensive debt (with high silver lining to the situation which is
interest rates), debt counselling is a that people who are in debt are now
good option to explore,” says Sager. starting to look for help more readily.
Official figures for the CPI stood “All our members have indicated
at 4,48%, near the upper end of that more people are pro-actively
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DPL