People in South Africa are finding it tough to save money as many people are around the world. The latest saving rate published by the South African Reserve Bank found the national rate of savings as a percentage of GDP has declined.
It appears that while households hold on to the 1.7 percent savings rate, household debt increased as more people try to do more with less income.
The rate of increase in consumer debt has passed the rate of increase of disposable income.
The increase in debt in South Africa is fueled by an increased demand in unsecured debt and people try to make ends meet.
As in the United States, increased debt levels, as a percentage of disposable income create a concern as less cash to spend creates a drag on the economy.
The issues being faced in South Africa will continue to require the help and assistance of Debt Counsellors for assistance in finding solutions for problem debt. Registered debt counsellors in South Africa can be found here.