Over 11 million consumers struggling with debt

2010-10-04 10:42

There are now more than 11 million consumers struggling with their debt.

“These numbers are a massive concern, as even with interest rates and inflation at historic lows the debt burden in increasing,” Luke Hirst, MD of debt counsellors Debtbusters, said today.

“We need to make the South African consumer aware that taking out further debt to pay current debt is not the answer and will result in deeper financial pain.”

Hirst said households needed to look at what they earned and make sure their expenses stayed within their budget.

“Although Gill Marcus in the last interest rate announcement said there was little scope for further interest rate cuts, with the recent growth and inflation figures, the need to cut interest rates further is a necessity,” Hirst said.

With more than 400?000 distressed home loans in the country and more consumers struggling to find work, interest rates had to be reduced urgently by at least 1%.

“Otherwise, these consumers are just going to give up and we shall find ourselves in a worse position.”

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