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Cape Town - It is sad that consumers are borrowing money to pay for essential expenses like groceries, school fees and utilities, said a top official from the National Credit Regulator (NCR), according to the SABC.
Kedi-la-tile Malakalaka, who is a manager at the department of counselling at the NCR, told the broadcaster in an interview that consumers are not just making debt to buy cars and houses.
She said consumers must take a pro-active approach to managing their finances in light of increasing costs of living and the recent interest rate hike.
There are options available for indebted consumers, Malakalaka said.
Watch the interview to find out what advice she has to offer.
The latest figures from the NCR showed rising debt levels.
Credit bureau statistics for the quarter ended September showed an increase in consumer debt, NCR CEO Nomsa Motshegare said, Sapa reported in December.
"The number of consumers with impaired records increased by 71 000 to 9.7 million, from 9.69 million in the previous quarter," Motshegare said at the time.
Latest Reserve Bank figures show that total bank loans to individual households exceeded R1 362bn at the end of December 2013.
The recent interest rate hike of 50 basis points to a prime lending rate of 9% means that households’ interest payments have increased by more than R6.81bn per annum, or nearly R570m per month.
The increase in the interest rate has also pushed interest payments to R12.2bn per annum, or more than R1bn per month.
Kedi-la-tile Malakalaka, who is a manager at the department of counselling at the NCR, told the broadcaster in an interview that consumers are not just making debt to buy cars and houses.
She said consumers must take a pro-active approach to managing their finances in light of increasing costs of living and the recent interest rate hike.
There are options available for indebted consumers, Malakalaka said.
Watch the interview to find out what advice she has to offer.
The latest figures from the NCR showed rising debt levels.
Credit bureau statistics for the quarter ended September showed an increase in consumer debt, NCR CEO Nomsa Motshegare said, Sapa reported in December.
"The number of consumers with impaired records increased by 71 000 to 9.7 million, from 9.69 million in the previous quarter," Motshegare said at the time.
Latest Reserve Bank figures show that total bank loans to individual households exceeded R1 362bn at the end of December 2013.
The recent interest rate hike of 50 basis points to a prime lending rate of 9% means that households’ interest payments have increased by more than R6.81bn per annum, or nearly R570m per month.
The increase in the interest rate has also pushed interest payments to R12.2bn per annum, or more than R1bn per month.