South Africans urged to stay out of debt

With the prices of almost everything increasing, Debt Rescue says consumers must start cutting back.

Piggy bank. Picture:

JOHANNESBURG - South Africans have been urged to start budgeting, with Debt Rescue saying about 50 percent of consumers are already about three months behind in their repayments of at least one account.

Interest rates have increased, food prices are going up and this week the National Energy Regulator (Nersa) announced that electricity prices will be increasing by 9.4 percent from April.

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These increases will have a severe impact on consumers who've been urged to start cutting back.

Debt Rescue's CEO Neil Roets says South Africans need to start thinking of ways to avoid getting into debt.

"People must start looking after themselves and the only way to do that is for them to draw up budgets, stick to that budget and in your budget make provision for price hikes. People must start living a realistic financial life."

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