How to get out of debt

The recently released Consumer Credit Index (CCI) for the first quarter of 2016 by credit bureau TransUnion indicates that the credit health of South Africans is at its lowest in three years.

The CCI declined by six points to 46.1 from 52.1 in the final quarter of last year mainly due to household debt service costs. According to the CCI, credit defaults by consumers rose by 1.8% year on year.

Geoff Miller, TransUnion CEO, says households’ credit situations have deteriorated since recent increases in the repo rate (by 75 basis points since November).