Consumers rush to credit to keep their heads above water
South Africans rely more on credit card debt and overdrafts despite rocketing interest rates
31 October 2022 - 10:25
UPDATED 10 November 2022 - 15:25
Private sector credit growth surged in September, defying expectations and rising at its steepest pace in seven years as consumers battling the cost-of-living crisis tapped their credit cards and drew down their overdrafts, while base effects and energy reforms lifted corporate demand for debt.
Reserve Bank data shows that private sector credit increased 9.7% year on year, topping market expectations of 8.15% and extending the growth in credit demand to the 15th straight month. The most significant contributor was assets-backed credit, accounting for 50.9% of total credit...
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