ANGELIQUE ARDÉ: Way too much month at the end of the money? You're not alone
If your salary is gone within five days of you receiving it, you aren't alone. As many as 56% of middle-income consumers in SA have spent all of their monthly income in five days or less of receiving it. This is according to a recent media release issued by FNB, which defines middle-income consumers as those earning a gross monthly income of between R7,000 and R60,000. "These consumers tend to struggle with money management, leading to sacrifices in important areas such as emergency saving for unforeseen expenses," says the CEO of FNB Retail, Raj Makanjee. "High spending and limited savings cause consumers to rely on credit to get through the month, making them more vulnerable to being caught in a debt trap." More than half of consumers miss at least one debit order over a 12-month period, indicating the pressure consumers are under, says another of the bank's execs. "For almost 40% of such customers, debt repayments make up more than half of their take-home pay, which we consider t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.