What’s News: S.A consumers warned of possible debt spiral

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Three years after our initial Covid-19 lockdown and while the virus has seemingly become a thing of the past, the debt pandemic which it seems to have created continues on as S.A consumers are warned of getting into a debt spiral.

According to the latest Eighty20/XDS Credit Stress Report the fourth quarter of 2022 showed an increase in appetite for credit among South Africans, with more than 800,000

new entrants into the credit market over that period, at the same time though the number of people in default on their repayments also increased.

Research from National Debt Advisors showed that between March and December 2020, 80% of the finances in South African households were negatively impacted as a result of lockdown, job losses and a subsequent interruption of income, which led many to running towards credit.

For more on this the team spoke to National Debt Advisors CEO Charnell Collins.