South Africans need to manage their debt better for their own peace of mind and to help stimulate the economy
23 February 2024 - 11:50
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Consumer and business spending is required to boost consumption and investment to stimulate growth in SA's struggling economy.
Lenders are in the difficult position of having to limit exposure to higher-risk consumers in lower market segments, preferring to grant credit to lower-risk top-tier segments, but the latter are becoming over-indebted.
This situation has been made worse by the loss of the retail credit market during the Covid-19 pandemic, with the account uptake having recovered to less than 40% of pre-Covid levels.
Some of the solutions proposed include building credit profiles on "credit-invisible" consumers, focusing on financial education and inclusion, and looking at outdated government pricing regulations which will unlock credit access for millions.
Browse through the pages below (zoom in or go full screen for ease of reading):
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
FREE TO READ | Credit Management Insights
South Africans need to manage their debt better for their own peace of mind and to help stimulate the economy
Consumer and business spending is required to boost consumption and investment to stimulate growth in SA's struggling economy.
Lenders are in the difficult position of having to limit exposure to higher-risk consumers in lower market segments, preferring to grant credit to lower-risk top-tier segments, but the latter are becoming over-indebted.
This situation has been made worse by the loss of the retail credit market during the Covid-19 pandemic, with the account uptake having recovered to less than 40% of pre-Covid levels.
Some of the solutions proposed include building credit profiles on "credit-invisible" consumers, focusing on financial education and inclusion, and looking at outdated government pricing regulations which will unlock credit access for millions.
Browse through the pages below (zoom in or go full screen for ease of reading):
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