South Africans are spending 75% of their take-home pay on debt.
Loading player...
South Africa’s well-developed financial system has led to increased access to credit. While this supports economic growth, overextension by households can have unintended negative consequences, says Joseph Phiri, certified financial planner at Alexander Forbes.
Phiri said that debt to disposable income for South African households has increased from less than 60% before 1994 to the current level of around 75%, which is higher than the long-term average of 70% according to the South African Reserve Bank (SARB).
Phiri said that debt to disposable income for South African households has increased from less than 60% before 1994 to the current level of around 75%, which is higher than the long-term average of 70% according to the South African Reserve Bank (SARB).
