Unsecured debt, or credit that is not backed by collateral, has reached “unsustainably high levels” in SA while consumers are facing rising interest rates and faster inflation that will impair their ability to service loans.

This is one of the findings made byDebtBusters, a company that helps consumers to manage debt, in its debt index survey for the fourth quarter of 2021. DebtBusters’ data shows that the average unsecured loan granted in SA has increased 45% in the last six years even as the number of borrowers taking out such loans dwindled...

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