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Debt in SA

28th February 2025

     

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South Africans are R2.3-trillion in debt, according to the National Credit Regulator’s consumer credit market report. This includes home and car loans as well as credit and store cards.

South Africans’ debt comprises mortgages (52%); secured credit, which includes pension-backed loans, furniture and motor accounts (22%); credit facilities, which include bank overdrafts, credit, garage and retail cards (14%). Other debt, such as unsecured and short-term loans, makes up 12%.

The number of credit consumers in South Africa has doubled in the past 16 years, but the growth includes the number of consumers with access to credit. In 2007, 16.8-million people had credit. By 2023, the number had grown to 27-million.

A third of people with credit are struggling to repay their accounts.

Banks granted 80% of consumer credit. Retailers granted 4% and non-bank financiers provide 8%. The remaining 8% is attributed to ‘other credit providers’.

— 16 April, 2024

Edited by Creamer Media Reporter

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