The crushing reality of the worsening economic situation in South Africa is brought home by the news that most income groups need about two-thirds of their take-home salary to pay their debts.
According to DebtBusters’ 2022 Debt Index for the third quarter, debt counselling inquiries increased by 30%, compared to the same period a year ago.
The index also shows that an increasing number of inquiries are from consumers who were first-time buyers of houses and cars before November 2021, when interest rates were at historical lows.
The Covid pandemic knocked us back financially, but things have not got any better since, because of the global economic crisis brought about by the consequences of the Russian invasion of Ukraine.
ALSO READ: Most South Africans need about two thirds of salary to pay debts – report
Unemployment has soared as much as our inflation rate, meaning that financial suffering is spreading, too. When it comes to debt, though, there is undoubtedly a need for better education around personal finance – and this should start in school.
Unfairly maligned is the current high school maths literacy curriculum, which is a guide for living in the real world and managing money. This should be spread even further, so people don’t fall into the debt trap in the first place.
