How is South African household debt impacting on disposable income, savings and investments?
Household debt has been rapidly increasing during this decade. The main reason for this is that debt became more easily accessible to the average South African. Interest rates have been relatively lower this decade than various times in our past, and the need for instant satisfaction has been controlling South Africans, forcing them to increase their debt levels. Current debt levels stand at approximately 80% of household income, which leaves very little for savings and investments. Actively reducing your debt exposure – especially now while the interest rates are low – will allow you to pay off your debt to a large degree, allowing you to save and invest as you should.
