EWN | DebtBusters: South Africans spend more of their salaries on servicing debt

DebtBusters found that people applying for counselling with a take-home pay of over R20,000 per month are spending 60% percent of their monthly net income servicing debt. Read the full article on EWN; we include an extract below:

With South Africans once again feeling the pressure from a harsher lockdown, many now have their backs against the wall facing high debt levels.

DebtBusters on Tuesday said to make matters worse, many South Africans were unable to save, which would jeopardise their future.

The organisation looks at data from thousands of South Africans who applied for debt counselling in the first quarter of this year.

The company found that people applying for counselling with a take-home pay of over R20,000 per month are spending 60% of their monthly net income servicing debt.

As July marks National Savings Month, DebtBusters said there were various reasons why South Africans found themselves in trouble.

These include salary cuts over the past year, and the prices of essential items increasing – forcing consumers to borrow to make up for the shortfall.

One woman said the pandemic had been a headache for her as her salary was reduced significantly.

Read the full article on EWN.

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