Middle class must save itself from collapse

2015-03-01 15:00

This week we report that banks repossessed almost 5?000 cars from the country’s middle class in the Western Cape and Gauteng provinces.

Many of these people lost their cars because they were unable to afford monthly instalments, forcing the banks to take the cars and resell them.

The auction houses are doing a roaring trade.

Last week, City Press reported on a government tender requesting private companies to help tackle the massive debt burden of civil servants.

An increase in personal tax, sin taxes, the fuel levy, e-tolls and petrol over the next few months following this year’s budget speech will stretch the already burdened middle class even further.

This is a sign that life is becoming increasingly tough for the middle class in South Africa.

But as stretched as we are, some of those in the middle class seem undeterred by the mounting debt.

We still buy flashy cars (that we can’t afford), expensive clothing brands (on credit) and consume the most expensive brands of alcohol – so we can be seen to be living a certain lifestyle.

Some are so brave that they would rather drown in debt than be seen driving cheaper cars and living in less affluent suburbs.

But economists warn that even a slight increase in the interest rate by the SA Reserve Bank will prove catastrophic for the country’s middle class.

This will lead to more people losing their cars and homes – a situation we cannot afford.

It is time to tighten our belts and only buy the things we need – and not try to keep up with the Joneses and Motsepes.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.