CEO at Debt Rescue, Neil Roets says South Africans don’t have a saving culture and that is resulting to debt.
He says financial education should be the first priority among citizens to assist in their financial challenges.
According to a new report released by Debt Rescue, middle-aged South Africans are the most indebted population group.
The debt management firm says more than half of all indebted consumers spend at least 75% of their monthly incomes servicing debt.
The report further suggests that approximately 23% of South Africans have barely any money left at the end of the month; the other 77% are flat broke.
An earlier report by the South African Human Rights Commission showed that, of the 19 million credit active consumers in South Africa, more than half had impaired credit records.
Meanwhile, Chief strategist at South African Savings Institute Gerald Mwandambira says people don’t generate enough income in South Africa.
The report has revealed that the age group with the largest amount of debt in South Africa is between 31 and 45, collectively owing 53% of all outstanding debt.