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Consumers owe R1.39 trillion

Dec 13 2012 16:37

There is less incentive for people to save towards a goal as credit allows them to have what they want today and to pay later, even though at a much greater cost.

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Johannesburg - Consumer credit health remained stable during the third quarter, the National Credit Regulator (NCR) said on Thursday.

New credit granted to consumers increased by 4.92%.

The number of consumers with impaired records increased by 28 000 quarter-on-quarter.

The total value of new credit granted increased from R104.57bn for the quarter ended June 2012 to R109.72bn for the quarter ended September 2012.

The growth in the value of new unsecured credit granted slowed down for the quarter, the regulator said.

This indicator increased only marginally, by 0.67%, when compared to the previous quarter, and by 22.43% when compared to the same period a year ago.

Mortgages grew 6.76% and secured credit, dominated by vehicle finance, grew by 6.45% when compared to the previous quarter.

The number of credit applications increased by 611 000 from 9.77m in June to 10.38m in September.

This was a 6.26% q/q increase and a 24.96% increase year-on-year.

The value of new mortgages granted increased from R26.94bn to R28.76bn.

Secured credit rose from R33bn for June to R35.16bn for September.

Unsecured credit increased marginally from R25.8bn for June to R25.97bn for September, a 0.67% quarterly increase.

This was a significant slowdown compared to a quarterly increase of 17.55% for the quarter ending in June.

Total outstanding credit owed by consumers reached R1.39 trillion at the end of September - a  q/q growth rate of 2.01% and an annual increase of 9.81%.

Mortgages accounted for almost 60% of this figure.

In total, 88% of total outstanding credit was owed to banks, a further 3% to retailers, non-bank vehicle financiers were owed 3.42%, and other credit providers 5.41%.

This category included pension-backed lenders, insurers, non-bank mortgage lenders, and securitised debt.

Credit bureaux held records for 19.69m credit-active consumers, an increase of 0.5% when compared to the 19.6m of the previous quarter.

The number of consumers classified in good standing increased by 62 000 to 10.45m.

This was a decrease of 0.8% year-on-year.

The number of consumers with impaired records increased by 28 000 from 9.22m to 9.25m  q/q.

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