Consumer debt will remain high despite the upcoming drop in fuel prices, a debt counsellor said on Monday.
“The drop in the retail price of petrol of 45 cents a litre on Wednesday will bring welcome relief to deeply indebted South Africans, but the overall indebtedness of consumers remains a problem,” Debt Rescue CEO Neil Roets said.
South African consumers owed R1.44 trillion, leading many to seek the help of debt counsellors, he said.
Roets said consumers should not use the drop in fuel prices to accrue more debt. Should the rand weaken, the price of fuel would increase again, he said.
“The 60 cents a litre reduction in the diesel price is actually more significant because most goods in the country are delivered by road transportation and if retailers play fair, this could result in slightly lower food prices.”