Overview of Debt Counselling Surge
Neil Roets, CEO of Debt Rescue, reported a significant surge in debt counselling enquiries. He highlighted this trend as indicative of troubling financial behaviours among South Africans. According to Roets, this uptick is driven by the dual pressures of high inflation and interest rates, coupled with stagnant incomes, which together significantly erode consumer purchasing power.
Increased Reliance on Credit
Roets noted a growing reliance among consumers on various forms of credit, including credit cards, store cards, and short-term loans. This shift is largely to meet basic needs such as feeding their families. He expressed concern over these trends, viewing them as symptomatic of broader economic challenges within the country.
Economic Challenges and Solutions
The economic issues highlighted by Roets include slow economic growth that fails to keep pace with the rising cost of living. He stressed the urgency of addressing these challenges to enhance financial stability for consumers.
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