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Consumer debt crisis

Consumer debt crisis South Africa

The debt crisis has become a harsh reality for South African consumers. Having entered into a technical recession in early 2017, the country faces hard times ahead as debt and monetary value in general take a hit. Having lived through the recession for a couple months already, the impact has been felt in many areas. Over 50% of economically active South Africans. Roughly 10 million consumers, are in an over indebted situation – these consumers are in arrears on at least three credit payments.

With figures showing an increase in debt review applications over the last few months, it is clear that many are struggling with too much debt. With ever increasing costs and never increasing salaries, the gap just seems to get larger by the day. And with the recession towering overhead, things are not looking so peachy for indebted consumers. Luckily, there is a silver lining to this dire situation – more and more consumers are having to learn about debt counselling and debt review. This in turn shows them how to budget and spend responsibly, aiming them towards a financially secure future. Not only hitting those in debt, but unemployment is unlikely to be reduced to the harsher economic climate. There is more chance of job loss through retrenchment than new hires and expansions.

Hitting hardest on the import prices, many daily commodities like petrol and diesel can expect a rise as the cost of transport and import will steadily increase. Creating a snowball effect, these rises will see in turn more high costs as the cost of operation becomes more and more. What makes this worse is that, as often seen, once the fuel price does come down, chances are we won’t see a reduction in the cost of transport and goods.

With a long term recession on the cards, it is time for consumers to educate themselves on the ins and outs of debt recovery. Whether contacting a professional debt counselor or taking on debt review, or even just consolidating your debt, contact Quick Consolidation Loans to find your way to a debt free life.

We will be able to offer advice on the suitability of debt consolidation to your specific financial situation, as there are instances where it would prove unsuitable. Our consultants will be able to help you with regards to secured and unsecured debt consolidation, and advice as to which would be most favorable to your outstanding debts. Operating on a national basis, we can also provide you with debt counseling or a debt review in South Africa. As mentioned, debt consolidation could save you on monthly payments and interest rates, which has made it a viable option for many. To find out if debt consolidation in South Africa is an option for you, contact Quick Consolidation Loans today.