More Consumers Deeper In Debt
The latest Consumer Credit Market Report from the National Credit Regulator (NCR) has shown that more consumers than ever are accessing credit and more consumers are getting in over their heads and have lost control of their debt.
200 000 New Credit Users
The use of credit has become for most people a normal way of life. Gone are the days of Lay-bys and saving toward buying items as credit facilities at almost every retailer now make it possible to have items or services now and pay for them later. Everyone uses credit and the latest Consumer Credit Market Report from the National Credit Regulator shows that there has been an increase in SA consumers who are using credit of almost 1% or 200 000 new credit users.
44% of Credit Users Live in Gauteng
The same report however shows that more people have fallen behind on their credit payments than before. An ‘impaired’ account, as it is called in the industry is an account where the consumer has not paid for 3 months. The latest report shows that impaired accounts increased from 19.92 million to 20.24 million when compared to the previous 3 months which is a very big increase of 314,000. The Report also shows that if you go back a year and compare the figures then with now, there has been an increase in impaired accounts of 1.47 million accounts.
Short Term credit accounts that are up to date have dropped by 13% since the end of 2015
South African consumers now owe their creditors an amazing 1.66 Trillion Rand. This shows the appetite of local consumers for credit, despite the fact that almost half of all credit users in SA have at least one account which is now 3 months behind on payments. It seems however that Credit Providers are happy to continue to make credit available to increase sales and make profit over time.
Download the Consumer Credit Market Report Here