DOMESTIC DEBT
More South Africans seek credit for big-ticket items
Consumers need to take out much bigger loans for cars and houses as prices rise, says National Credit Regulator
More South Africans are taking up credit for big-ticket items such as houses and vehicles, according to data released by the National Credit Regulator (NCR). But the improvement, which was recorded in the quarter to December 2017, came off a low base, analysts cautioned. The fourth quarter usually showed improvement due to spending over the festive season and prices had gone up substantially, NCR analyst Bongani Gwexe said. In the last quarter of 2017 the value of new mortgages granted increased by R3.79bn — and by R3.99bn compared with the same period the year before. Secured credit, which was dominated by vehicle finance, increased R4.12bn in the quarter and R4.18bn year on year. "A new vehicle now is more expensive than it used to be, while the average prices of homes have shot up. "Consumers need to take out much bigger loans because of this," said Gwexe. The motor industry sold 557,586 new vehicles in the domestic market in 2017, a 1.8% improvement on the 547,547 achieved in 20...
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