Streaming issues? Report here
Aubrey Masango 2019 BW Aubrey Masango 2019 BW
The Aubrey Masango Show
20:00 - 22:00
volume_up
volume_mute

Up Next: Best of CapeTalk
See full line-up
The Aubrey Masango Show
20:00 - 22:00
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

I like to save. I don’t buy new cars – Rob Rose (Financial Mail)

17 May 2021 8:01 PM

Financial Mail Editor Rob Rose opens up about his attitude to money (hopes and fears, successes and failures, etc.).

Share this:
Read More arrow_forward

Invest in precious metals such as gold – a guide for South Africans

17 May 2021 7:35 PM

Bruce Whitfield interviews Dr Zoltan Erdey, author of "Going for Gold: The South African's Guide to Investing in Precious Metals".

Share this:
Read More arrow_forward

Is 'localisation' a realistic economic policy for South Africa?

17 May 2021 7:25 PM

Can local businesses substitute 20% of their imports? Bruce Whitfield interviews Peter Attard Montalto of Intellidex.

Share this:
Read More arrow_forward

SA economy recovering faster than expected - 4% growth a possibility in 2021

17 May 2021 7:08 PM

The Money Show’s Bruce Whitfield interviews Patrice Rassou, Chief Investment Officer at Ashburton Investments.

Share this:
Read More arrow_forward

Redefine Properties reports 62.7% drop in headline earnings

17 May 2021 6:50 PM

The Money Show’s Bruce Whitfield interviews Redefine Properties CEO Andrew König.

Share this:
Read More arrow_forward

Chicken sales are not healthy, but comfortable - Chris Schutte, Astral Foods

17 May 2021 6:26 PM

The Money Show’s Bruce Whitfield interviews Chris Schutte, CEO at Astral Foods.

Share this:
Read More arrow_forward

SA Parliament hauls Facebook before committee about new WhatsApp terms

14 May 2021 2:56 PM

Got a question for Facebook? Contact DA Member of Parliament Phumzile Van Damme of the Communications portfolio committee.

Share this:
Read More arrow_forward

Connor McGregor earns R2.5bn to become the richest athlete in the world – Forbes

14 May 2021 9:48 AM

Lionel Messi (R1.8bn) came in second. There are no women on Forbes magazine’s list of the world’s 10 most-well-paid athletes.

Share this:
Read More arrow_forward

The rand is on a roll - should you stop, or start, sending money offshore?

13 May 2021 9:06 PM

Personal finance expert Warren Ingram has sound advice on the timing of offshore investment decisions.

Share this:
Read More arrow_forward

Vaccine rollout will support SA tourism recovery in 2nd half of 2022 - RMB

13 May 2021 8:36 PM

The Money Show's Bruce Whitfield interviews Jessica Spira, Sector Head for Healthcare and Hospitality at Rand Merchant Bank.

Share this:
Read More arrow_forward