Ryan Falkenberg, co-CEO, CLEVVA.
There is no escaping the fact that South Africa has a severe and deep-seated debt problem. The average household spent nearly 62% of its income on servicing debt in 2022. While thats slightly down from the 66.1% they spent in 2021, there are other indicators that consumer debt troubles are getting worse.
In mid-August Absa revealed that the number of bad debts in its home loan portfolio tripled year-on-year. There are a number of macro-economic factors behind this surge, including rising interest rates and rampant inflation. With even middle-income South Africans spending 80% of their salary within the first five days of payday, its easy to see how those rising costs can quickly result in deb…
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