Johannesburg - Growth in the total value of outstanding credit balances in the South African household sector slowed down further to 3.3% year-on-year (y/y) at the end of in February 2015 to its lowest level since January 2010, according to Jacques du Toit, property analyst at Absa Home Loans.
Growth in both household secured and unsecured credit balances was lower at end-February compared with the same month a year ago.
Du Toit told Fin24 the reason for low growth in outstanding household debt levels is that the credit taken up by consumers have been growing at a slower pace for some time already against the backdrop of the financial pressure they experience.
At the same time the state of credit records, the risk appetite of banks and lending criteria also play a part.
Consumers are trying to pay off their existing debt and that also has an impact on outstanding debt levels.