• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Unemployment triggers debt crisis

Feb 07 2013 22:14 Sapa

Related Articles

SA a debt timebomb, warns expert

Gauteng residents SA's most indebted

Debt review relief

Debt review divorce threat

Shaking off debt review shackles

Can I get a debt review grace period?

Johannesburg - The high unemployment rate is worsening over-indebtedness among consumers, the Credit Ombud said on Thursday.

"Many people simply can’t find work and this is affecting households’ ability to pay back their debts," said Credit Ombud Manie van Schalkwyk.

"We’re seeing high levels of over-indebtedness across the country."

Van Schalkwyk was commenting following the release earlier in the week of the latest Quarterly Labour Force Survey (QLFS), which showed that the country's workforce decreased by 235 000 people between the third and fourth quarters of 2012.

The QLFS is a household-based sample survey conducted by Statistics SA and covers the labour market activities of people aged 15 to 64.

The latest survey covers the period from October to December.

It found that in the third quarter (July to September last year), the labour force numbered 18 313 million, but that this dropped to 18 078m in the fourth quarter.

Van Schalkwyk said the National Credit Regulator had reported that of the 19.69 million credit-active consumers, more than 9.25 million (47%) had impaired records.

He warned consumers who had lost their jobs and were unable to find work to contact their credit providers and inform them of their change in circumstances.

"Credit providers are more likely to be willing to negotiate lower repayment terms the sooner they are told about your loss of income," said Van Schalkwyk.

"Once you are three or more months in arrears, it may be too late and you could be negatively listed at a credit bureau."

Many consumers applied for credit, assuming their income was secure, but did not plan for loss of income, Van Schalkwyk said.

He advised consumers to prioritise their debt, to redo budgets to and use their redundancy package wisely.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

jobs  |  debt


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

10 most expensive cars In the world

This is car porn at its best!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote