NCR Credit Bureau Monitor Report

Credit Bureau Monitor (1st Quarter 2014)

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The various credit bureaus report to the NCR each Quarter (as do others they regulate such as Debt Counsellors). The NCR the collate that info and release a report on the statistics over the 3 month period.

They compare those 3 months to the same time the previous year (same 3 months) and also compare it to the previous 3 months that had just gone by.

Here are some of the figures from the recent report on the beginning of this year (Jan- March):

 

Credit Active Consumers

The number of credit active consumers has grown recently by almost a million people with new credit users entering the market. Wow! That is an amazing 5% increase in credit users in SA in 3 months. What happened? These may be students and some people who never had any source of income before (or just never wanted to use credit for anything). This may be an indication that more and more consumers are having to access credit to stay afloat.

Those with Judgments and Admin Orders

Out of all the credit users in the country almost 12% have judgments or admin orders against them. These consumers are probably not able to access more credit (they can under some circumstances).

People in trouble

It is not unusual for someone to forget to pay their account on time and end up being a month behind on payments however if they then fall 2 months behind it is a strong indicator that they are having huge financial troubles and that they are struggling to manage their debt repayments. at present 14% of all credit users are a month behind on payments.

Overindebted Consumers

stressed consumer no moneyWhen you don’t pay your accounts for 3 months (or more) then creditors begin to take legal action against you and the collections process really kicks in in a big way. These consumers are in serious trouble and need a drastic change to try improve their situation. At present 32% of consumers are in this category and desperately need to seek professional assistance (like that of a Debt Counsellor) to try turn their situation around before they too join those with judgments or admin orders against them. It is unlikely that these consumers should be granted new credit as this will probably be reckless credit granting.

Those in good standing

That means that only +- 42 % of all credit users in SA are paying their debts on time and in full. That is about 12 million consumers. These are the consumers where the creditors are making a profit…which they are spending to collect from the other 58%. Well, 47% if you ignore those with judgments.

The stats seem to show that though there have been so many new credit users and a lot of new accounts the amount of money out there on credit is actually reducing somewhat.

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