Debt Rescue’s Annaline van der Poel says many employed South Africans support extended family, a reality made worse by the long-term effects of Covid-19.
She says while family support is deeply rooted in South African culture, it often limits people’s ability to save, invest or manage their own debt.
“Elderly parents might be supporting brothers, sisters, children who are in financial difficulty. Every element of our budget every month is under pressure in some way or another. So if we are sitting with any form of expense that we have to make a contribution towards, it does place an additional burden.”
Van der Poel says young professionals often turn to credit to balance these financial obligations which can lead to serious debt.
She says financial education is important for those entering the workforce.
“Remember what you need to live [on] every month, so know what things cost, factor in a buffer in your budget if things go up. [With] inflation food becomes more expensive [so does] electricity and transport. So don’t live to the maximum of your means.”