Debt mounts as South Africans bear brunt of COVID-19
A national survey by one of the largest debt counsellors in
the country shows the COVID-19 pandemic has catapulted many South Africans into
financial distress.
Debt Rescue's survey done over various social media platforms across demographics, shows of the 1 040 participants - 85% disclosed their finances had taken a hit because of the pandemic.
Ten percent shared that they were left with no choice but to make use of financial assistance - such as payment holidays.
Debt Rescue's Neil Roets says they've come to understand consumers had thought they could weather the storm - but the reality of retrenchments, pay cuts and temporary layoffs was something they couldn't ignore.
"Credit providers started to collect on their debts. We saw that in the beginning of lockdown and the first month of June, credit providers did not really collect on their money and in fact they gave out payment holidays,” Roets said.
“These payment holidays are now running out and credit providers are starting to collect their money and that is why there is more and more people asking for help,” he added.