Credit check data from PayProp reveals that South African renters earning under R40,000 per month are on shaky ground.
Credit check data from PayProp reveals that South African renters earning under R40,000 per month are still under significant financial strain, spending over 50% of their income on debt.
The result is a surge in credit impairments and defaults, reflecting the unsustainable debt burden carried by South African households amidst ongoing economic challenges.PayProp is the largest processor of residential rental transactions in South Africa, handling over R1 billion in transactions each month.
This trend is in line with data from the South African Reserve Bank , which showed that household debt as a percentage of disposable income reached its highest level in over a decade in Q1 2024. Data from other credit firms show similar signs, with some indicating that the situation is even worse. Eighty20 highlighted that these South Africans, with a take-home pay of about R42,100 after tax, have unsustainable levels of debt in the second quarter of 2024.
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