Streaming issues? Report here
Just the Hits generic CapeTalk Just the Hits generic CapeTalk
Just the Hits
10:00 - 11:00
volume_up
volume_mute

Up Next: Inside EWN
See full line-up
Just the Hits
10:00 - 11:00
Home
arrow_forward
Business

South Africans are drowning in debt but still clamouring for credit

11 October 2019 10:07 AM
Tags:
Organised crime
FNB
Debt
Personal finance
economist
Maya Fischer-French
credit
Maya on Money
credit provider
loan
unsecured debt
loan shark
credit extension
loan application
Personal Finance Journalist
Siphamandla Mkhwanazi

Loans sharks are having a field day and there's an organised crime element, says personal finance journalist Maya Fischer-French.

The growth is not in secured credit… Only R40 billion was mortgages… We are now in a debt spiral… If 55% of credit applications are turned down, where do they go? They go to loan sharks…

Maya Fischer-French, personal finance journalist - Maya on Money

Unsecured credit is growing at around 11% or 12%...

Siphamandla Mkhwanazi, economist - FNB

South African consumers are drowning in debt worth R1.9 trillion.

Of that about R200 billion is unsecured, short-term debt (e.g. credit card debt, store accounts, personal loans, etc.)

Credit providers turned down six million credit applications (55% of total applications) in the second quarter of 2019.

Pixabay.com, 2019

The Money Show’s Bruce Whitfield interviewed Maya Fischer-French (Personal Finance Journalist at Maya on Money) and Siphamandla Mkhwanazi (Economist at FNB).

Listen to the interview in the audio below (and scroll down for more quotes from it).

We’ve seen aggressive lending, especially around furniture and household stuff. Those are not needs, those are wants…

Maya Fischer-French, personal finance journalist - Maya on Money

Salaries are not keeping up with real inflation, let’s be honest. Our inflation rate is not 5%... combined with massive retrenchment – we’re in a spiral!

Maya Fischer-French, personal finance journalist - Maya on Money

Often the police are involved [in loan sharking] ... [people tell her] ‘I can’t go to the police station, they are involved’… There’s definitely an organised crime element to it…

Maya Fischer-French, personal finance journalist - Maya on Money

… most of that [credit growth] is unsecured, which we understand to be consumption-driven credit. However, we aren’t seeing much of that translated into actual consumption. What are consumers doing with the credit if it’s not coming through in sales?

Siphamandla Mkhwanazi, economist - FNB

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:


This article first appeared on 702 : South Africans are drowning in debt but still clamouring for credit


11 October 2019 10:07 AM
Tags:
Organised crime
FNB
Debt
Personal finance
economist
Maya Fischer-French
credit
Maya on Money
credit provider
loan
unsecured debt
loan shark
credit extension
loan application
Personal Finance Journalist
Siphamandla Mkhwanazi

More from Business

Ecstasy mandy mdma 123rf 123rflifestyle

Decriminalise the use of recreational drugs – Department of Social Development

25 September 2020 3:37 PM

"It’s time to stop arresting drug users," Deputy Minister of Social Development Hendrietta Bogopane-Zulu told the UN this week.

Share this:
Read More arrow_forward

Elon Musk on the cover of Newsweek 123rfbusiness 123rf 123rflifestyle

Elon Musk is R1.1 trillion richer than at the start of the pandemic

25 September 2020 2:08 PM

The Pretoria native is having an excellent pandemic – much like his über-rich peers.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Money lessons Covid-19 taught – heed them for a brighter, wealthier future

25 September 2020 10:44 AM

Your financial future – even if you have to start over – could be brighter than it would’ve been without the pandemic.

Share this:
Read More arrow_forward

Deputy Chief Justice Raymond Zondo at the state capture inquiry

'It’s sad and awful! Judge Raymond Zondo sounds resigned and defeated'

25 September 2020 9:17 AM

"Zondo’s comments at the end of the hearing; it was just so bleak! A sombre, grim end to a day," says journalist Erin Bates.

Share this:
Read More arrow_forward

cashless-paymentjpg

'SA cash economy about 60% of GDP, moving that to digital would be huge saving'

24 September 2020 8:39 PM

The Covid-19 pandemic's moving us towards a cashless society. Arabile Gumede interviews Ukheshe co-founder, Clayton Hayward.

Share this:
Read More arrow_forward

Small business owners entrepreneurs entrepreneurship 123rf 123rfbusiness

Retail Capital injects R500m into economy through Covid-relief for SMEs

24 September 2020 7:41 PM

'Smaller businesses have largely been ignored'. Arabile Gumede interviews Retail Capital CEO Karl Westvig.

Share this:
Read More arrow_forward

national_lottery.jpg

Diverted Lotto millions: 'Can we please get to holding people to account!'

24 September 2020 6:58 PM

Outa's Stefanie Fick urges the speedy investigation of allegations against the suspended COO of the National Lotteries Commission.

Share this:
Read More arrow_forward

Skyscrapers CBD Johannesburg 123rf 123rfbusiness

Long-term investment case for property in Africa remains intact

24 September 2020 1:38 PM

There’ll be many opportunities for frontier investors in the coming years, says Absa's Somaya Joshua.

Share this:
Read More arrow_forward

villa mansion pool dusk 123rf 123rfbusiness 123rflifestyle

Joburg City Power cuts wealthy Dainfern households for electricity theft

24 September 2020 12:49 PM

"There was resistance," says City Power's Isaac Mangena. "Security told us, 'Why are you here? Politicians stay in this area!'"

Share this:
Read More arrow_forward

Depressed boy child holding smile smiley pretending depression depressed 123rf

Social media: We are puppets. Especially our kids – Netflix documentary

24 September 2020 11:46 AM

We’re lab rats in a social experiment of unapparelled importance. Kieno Kammies interviews Dean McCoubrey of MySociaLife.

Share this:
Read More arrow_forward