Two-pot system yet to give reprieve to consumers under debt management - Debt Busters
More cash-strapped consumers turned to debt management in the third quarter of the year, as household expenses continue to outweigh income.
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JOHANNESBURG - Debt management company, Debt Busters says the impact of the two-pot system and the beginning of the interest rate cutting cycle are yet to give reprieve to consumers under debt management.
More cash-strapped consumers turned to debt management in the third quarter of the year, as household expenses continued to outweigh income.
Debt Busters released its latest debt index this week, which gives some insights on household finances for consumers under debt management.
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In the third quarter of the year, Debt Busters said it saw an increase in demand from consumers for debt management.
This is despite reduced inflationary pressures, the first interest rate cut, access to a portion of retirement savings, no load shedding and political stability post-elections.
While it’s still too soon to tell, executive head at Debt Busters, Baney Sager said he expects a more positive impact on the debt book in the coming months.
“I think in Q4 2024 we will see the full impact of both of those. Our hope is that inflation will continue to be at lower levels or come down even further and that whoever is accessing their retirement funds that they are using for the best purpose.”
Sager has called on consumers battling high debt levels to consider debt review to get their finances in check.