CAPE TOWN – A national debt counselling company said more young people were seeking help for debt-related issues.
A recent survey revealed that 18 to 25-year-olds, especially students, are being given credit cards by merely furnishing proof that they receive a steady income of R200 per month.
According to the study, student debt has more than doubled over the past three years.
Debt Rescue’s Neil Roets said credit providers should behave more responsibly.
“If they can show that they earn at least R200 a month from a parent or a guardian, not even from their own income or a job, then they can obtain a credit card. I feel that might be reckless in itself.”
The concerns around student debt comes hot on the heels of the release of Old Mutual’s Savings and Investments monitor statistics.
The bi-annual study focused on the savings patterns of the youth. 30 percent of respondents didn’t see saving as a priority, tying in with the trend of buying on credit rather than saving.
Of those who are saving, 34% are saving for cars, 31% for emergencies, 28% for a deposit on a home and 26% are saving for retirement, to start a business and pay off debt