Neil Roets, CEO of Debt Rescue, spoke with Jeremy Maggs on Moneyweb about the concerning rise in vehicle payment defaults, reaching R4 billion.
He explained that increasing loan installments and rising interest rates on vehicles and homes are placing immense financial strain on consumers. Coupled with stagnant salaries and rising costs of essentials like petrol and electricity, many households are struggling to adhere to their credit agreements.
Roets pointed out that consumers often purchase vehicles above their means, which worsens their financial challenges. Additionally, many are forced to prioritise necessities like food over vehicle installments, further complicating their ability to stay on track with payments.
Listen to the interview: