South Africa’s high interest rate and cost of living environment are costing middle-class consumers dearly.
Middle-class South Africans have unsustainable levels of debt and are currently spending, on average, R7,000 per month on retail accounts, unsecured credit, and other types such as bonds or vehicle finance.
Several sources noted that South Africa’s middle class earns anywhere from R8,000 to 29,000 per month. On the other hand, Eighty20 defines middle-class workers as households with an income of nearly R25,000 a month and a personal income of R16,000. According to the company, their group holds around 30% of all home and vehicle asset finance loans in South Africa, despite representing only 20% of the total loan value.However, in a typical scenario as shown below, the median installment-to-income ratio is closer to 53%.middle-income households spend R7,000 on retail accounts, unsecured credit, and other forms of debt such as home loans and vehicle finance.
Considering these thresholds, at 53%, middle-class South Africans are considered to have unsustainable levels of debt.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africans earning over R15,000 a month are in serious troubleSouth Africa’s rich and middle class only make up a small percentage of the population, but they hold the vast majority of debt in the country.
Read more »
Perfect storm hitting South Africans earning more than R20,000 per monthThe latest DebtBusters Money-Stress Tracker has set alarm bells ringing for middle class South Africans, whose debt is hitting crisis levels.
Read more »
Standard Bank warning to South Africans earning over R25,000 per monthNew data from Standard Bank shows a concerning trend for those who earn over R25,000 per month.
Read more »
Drinking and driving in South Africa – what insured South Africans need to knowThe Ombudsman for Short-Term Insurance examines a case where someone submitted a claim following an accident – admitting they had been drinking earlier that day.
Read more »
South Africa: What South Africans Need From Political Leaders Is a Commitment to PeaceAnalysis - Positive change is possible but requires ethical leadership from the new cabinet and a shared vision for a peaceful future.
Read more »
South Africa: Cold Fronts Bring Wind, Rain and Snow to South Africa - South African News BriefsWarnings as Cold Fronts Batter South Africa
Read more »