Share

Consumers wrestle with debt

Johannesburg - Consumers are weighed down by debt and it will take some time before credit extension again shows strong growth.

From the latest Absa Home Loans report on household mortgage it appears that the ratio of debt to disposable income for the first quarter remained at 78.4%.

In May mortgage advance growth slowed down even further.

Loans for commercial and residential property increased 3.4% year on year in May, compared with a 3.6% increase in April. This was despite the signifiant decline in lending rates from 15.5% 18 months ago to the current 10%.

In the first quarter of this year the ratio of outstanding mortgage debt to disposable income was 47.8%, slightly lower than the 48.8% in the fourth quarter of 2009.

Even though the debt ratio has levelled off, most households are no better off, says Jacques du Toit, senior property analyst at Absa Home Loans.

In May the cost of paying off mortgage debt was nevertheless the lowest since late 2006, thanks to a 3.6% rise in nominal household disposable income and a mere 1.5% increase in mortgage indebtedness.

- Sake24.com

For business news in Afrikaans, go to www.sake24.com

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders