New data from debt counsellor, DebtBusters, shows that earners in all income brackets in South Africa are worse off compared to four years ago when comparing total debt exposure to annual net income – with those taking home between R5,000 and R20,000 are under most pressure.
Payment holidays and successive repo rate reductions provided South African consumers significant relief in 2020, but for those reliant on unsecured debt, the respite has proved short-lived, DebtBusters said.
Those taking home over R20,000 per month need to spend 60% of their monthly net income to repay debt, the group’s Q4 2020 Debt Index showed.
The Q4 Debt Index found that real incomes shrunk across all income bands, in some cases by up to 20% compared to 2016 levels.
Read the rest of this article on BusinessTech.co.za.