Bleak year for consumers

SURVEY: HOPE OF MANY FIZZLING AS THEY TURN TO CREDIT; NO REAL WAY OF SETTLING DEBT

- Ina Opperman

South African consumers have entered this year with very little hope, drowning in debt and without any savings according to a new survey. The survey shows that 64% of the respondents have brought no savings with them into the new year to fall back on.

It also found that 38% of those surveyed would rather buy less food to cut costs.

The latest Debt Rescue survey paints a bleak picture of a nation in deep financial trouble and drowning in debt with no safety net, despite 38% of households prioritising saving money every month at the top of their list of New Year's resolutions.

Neil Roets, CEO of Debt Rescue, says the results of the post-festive season survey are deeply concerning and indicate that South Africans are turning to credit to make ends meet this month, with no real way of settling their debt over the upcoming months.

"It is a matter of plugging the holes and hoping for the best, for most citizens."

While festive season spending does play a role, it is important to note that this time over 53% of South Africans took great care not to overspend during the festive period, while another 29% stretched their budget by a minimal amount.