Why is the middle-class over-indebted?

Parliament is concerned with middle-income earners who make around R300 000 per annum.

The subcommittee of the Trade and industry portfolio committee is looking in providing debt relief for the most vulnerable as well as understanding heavily indebted consumers.

The issue of balloon payments has been identified as one of the factors that are causing distress to middle-income earners.

702/CapeTalk's listeners weigh in on what is causing financial stress and what could be done to ensure relief.

The lack of financial education in schools in relation to understanding debits and credits, profits and losses is just overwhelming. It all goes down to education...

Graeme, Malmesbury

For me it is the high price of food hand petrol, tax is also very high. If you want to have a lifestyle that is a little healthier you must be prepared to cough out more, those things are not cheap.

Nthabiseng, Pretoria east

We often are not experienced with money and this is with regards to some of our black people who grew up in townships with parents that are either not working or doing domestic work. We don't come from a background where there's always been money ... we never really understood money.

Thabang, Sandton

Caller Patrick says he gets irrate at analysts who accuse South Africans of reckless spending without realising the historical backgrounds from which people come. He himself is an accountant and is aspirational. But he also looks after his siblings and other relatives.

Listeners made the point that first generation graduates in black families carry an enormous responsibility.

To hear more of this views on money, listen below:


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