Consumers spending 64% of income to service debts - report

In its latest quarterly report, Debtbusters said that consumers were facing massive debts, with many borrowing money to pay for necessities including food and transport.

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JOHANNESBURG - Debt management company Debtbusters on Thursday said that an increasing number of South Africans were finding it hard to make ends meet and were using huge portions of their salaries to pay off their debts.

In its latest quarterly report, the debt counseling company said that consumers were facing massive debts, with many borrowing money to pay for necessities including food and transport.

The company's COO Benay Sagar said consumers used up to 64% of their net income to service debts.

“What we are finding is that from all different income groups, most South Africans who have made an inquiry with Debtbusters, the debt level has skyrocketed over the last four years. What we found out was they need to borrow more unsecured lending to basically supplement their net income, which are not growing.”