According to the National Credit Regulator (NCR), total outstanding debt owed by consumers to their creditors as
at June 2012 was R1.36 trillion. This is made up of money owed by consumers in the form of mortgages, secured
credit, credit facilities, unsecured credit, and short-term credit.
Of 19.6 million credit active consumers, 53% were in good standing while 47% had impaired credit records. An impaired credit record refers to consumer accounts that were in arrears by three or more months, accounts that had an adverse listing, or that reflected a judgement or administrative order.
Unsecured credit represents almost 10% of total outstanding consumer credit. It increased by 31.5% from 2011. Both the minister of trade and industry, Rob Davies, and the minister of finance, Pravin Gordhan, have expressed concern over the growth of unsecured credit. Mr Davies said that ‘while unsecured credit comprised different components, some is outright preying on the vulnerability of low-income groups’.
Government needs to look at more ways to safeguard vulnerable low-income groups from unscrupulous money lenders as the end result can be financially devastating to these already financially stressed low income groups.
Of 19.6 million credit active consumers, 53% were in good standing while 47% had impaired credit records. An impaired credit record refers to consumer accounts that were in arrears by three or more months, accounts that had an adverse listing, or that reflected a judgement or administrative order.
Unsecured credit represents almost 10% of total outstanding consumer credit. It increased by 31.5% from 2011. Both the minister of trade and industry, Rob Davies, and the minister of finance, Pravin Gordhan, have expressed concern over the growth of unsecured credit. Mr Davies said that ‘while unsecured credit comprised different components, some is outright preying on the vulnerability of low-income groups’.
Government needs to look at more ways to safeguard vulnerable low-income groups from unscrupulous money lenders as the end result can be financially devastating to these already financially stressed low income groups.
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