South African salaries have effectively shrunk over the last five years, new data from debt counsellor DebtBusters shows.
While nominal incomes were 3% higher compared to 2016 levels, when cumulative inflation growth of 24% is factored in for the same period, real incomes shrank by 21% over the five-year period.
This has led to South Africans having less disposable income and increasingly relying on debt to make ends meet, the group said.
“Unsecured debt for the average client is 32% higher than 2016 levels; for top earners, the figure is 49%. This indicates consumers continue to use unsecured credit to supplement their incomes.”
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