Credit data company Experian launched a consumer default index on Tuesday to help pinpoint where South Africans are experiencing financial stress. According to the index, which measures the rate of first-time consumer defaults across home, vehicle, personal and credit card product accounts in SA, the total consumer debt value in SA between May and July was R13.45bn. The index reflecting a reading of 3.57%, an improvement 0.24 percentage points from 3.81% in July 2016. This means 3.57% of loans that had never before experienced defaults, were defaulted for the first time. Experian attributed this to tighter lending practices, saying: "Affordability legislation, the introduction of pricing caps as well as reduced interest rates have resulted in lenders implementing stricter lending policies." Experian MD Simon Russell said the index was the first in SA to provide insights into the debt pressures on the country’s different consumer groups, and it would be released monthly. He noted SA’...
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