Economist advises consumers to settle debt quickly
Although a harsh one for consumers, an economist feels the decision to increase the repo rate by 25 basis points to 7% was necessary in the current economic slump.
The prime lending rate now goes up to 10.5%. Reserve Bank Governor, Lesetja Kganyago announced the hike yesterday.
Economist Francois Stofberg says consumers must move quickly to settle outstanding loans and purchases.
Also read: Repo rate up by 25 basis points to 7%
"For the average man on the street, the rate increase only means that any debt that you still owe is going to be more expensive - that's credit card debt, money that you owe on your car, home and all those nice cards that you pay off every month," he said.
(File photo)