When it comes to personal finance there are many South Africans that are walking around in the dark, wondering where their money went. Month after month they receive their pay checks, blindly pay their bills, and then struggle to scrape any leftover cash together to pay for everyday expenses like food, transport and electricity, which in winter months tend to be higher than normal.
2 September 2015
South Africans are sure to be relieved following the announcement of the petrol decrease by 69 cents a litre and Diesel by 54 cents a litre from today (Wednesday 02 September). It’s been a testing time for the South African economy and motorists will be all too happy to finally receive some good news. In particular, this will come as a great relief to lower income earners, who will definitely feel the pressure lifted from their wallets.
Stats released by DebtBusters in its quarterly Debtometer show that it’s often the poorer South Africans that are hardest hit by debt: Lower income earners (that earn less than R10, 000 per month) have 90%+ of their debt as unsecured debt.
“A weakening Rand, increase in living expenses and the latest repo rate increase has meant that consumers who are already living on the bread line would welcome any decrease in the cost of living”, says Ian Wason, CEO of debt counselling company DebtBusters.
Wason added, “With further rate hikes expected to be announced at the next monetary policy meeting later this month, we could expect the cost of borrowing increase, meaning consumers are going to have to pay more in their loan repayments”.
Wendy Monkley, Head of Marketing at DebtBusters is in agreement and says that more South African’s are struggling to manage their cash flow.
“The significant drop in the petrol price could not have come at a better time to motivate consumers facing financial pressure and will most certainly come as a boost to their disposable income and help those households struggling to meet their monthly financial obligations”.