Study: Most South Africans use unsecured credit to cover emergencies, not luxuries
New research suggests most South Africans are not using unsecured credit for luxury spending, but to cope with financial pressure.
A survey of more than 20,000 consumers found nearly 30 per cent take out personal loans to cover emergency expenses.
Around 20 per cent use the money for home renovations, while about 11 per cent say it helps cover education costs.
ALSO READ: More South Africans relying on credit to survive
"It was reassuring to see that the vast majority of respondents are not using unsecured credit to fund unnecessary expenditure," says Andy Gilder from DirectAxis.
He says only a small minority reported using unsecured credit for discretionary spending.
Seven per cent used the facility for lifestyle expenses such as celebrations or clothing, and just 2 per cent used it to fund a holiday.
ALSO READ: Rising food prices forces increased credit reliance this festive season
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