About 70% of the 14,000 respondents to the DebtBusters Money-Stress Tracker survey experienced financial stress.
- DebtBusters released its first Money-Stress Tracker survey on Tuesday.
- It measured the financial stress of more than 14,000 people who were not participating in any debt management program.
- More than 90% of respondents believed that increasing financial stress had an impact on their home life.
- Get the biggest business stories by e-mail every weekday or go to the Fin24 front page.
At Thursday’s meeting of the South African Reserve Bank’s Monetary Policy Committee (MPC), analysts predicted another interest rate hike, with almost all (94%) of the respondents in a survey of 14,000 South Africans already feeling that growing financial stress is affecting their homes. life.
more than half (52%) of people surveyed by DebtBusters indicated that they were stressed and anxious about running out of money before the end of the month.
Unlike DebtBusters’ other surveys, which tend to assess the financial stress of South African consumers through the lens of those considering debt counselling, the latest research – the Money-Stress Tracker – was based on 14,000 people not participating in any debt management program.
Around 77% felt that financial stress had affected their work, and a further 76% believed that their health had even deteriorated. Women were under more financial stress.
Some 36% of respondents were already struggling to pay off all their debts each month, and 15% were struggling to pay tuition. Another big part of the cohort worries about inflation (27%), unexpected expenses (23%) and whether they will have enough money for retirement (12%). However, many people have not done anything about their stressful financial situation because they “feel stuck” or need time to think.
Benay Sager, head of DebtBusters, believes the pressure on consumers is far worse than the official inflation figures suggest, as the price of electricity, petrol and other essentials have risen by double digits. He said that a significant number of those who have recently inquired about debt counseling are consumers who have taken on asset debt in the past two years.
“You have the two rising twin towers, as I call them — inflation and interest rates,” Sager said. “Every interest rate increase means that we have less money for food, less money for gasoline. And we can already see that the consumers who come to us are spending more and more of their earnings on necessities,” he added.
More interest rate pain awaits
The Monetary Policy Committee is expected to raise interest rates again this week. The only unanswered question is by how much.
BNP Paribas South Africa Chief Economist Jeff Schultz believes a 75 basis point hike is more likely than 50 basis points this Thursday.
With a new home loan of Rs 2 lakh, this means an increase in monthly installments of nearly Rs 900.
The chief economist of Sanlam Investments, Arthur Kamp, expects continuous interest rate hikes in the coming year. The current repo rate of 4.75% could rise to 6.5% by the first half of next year, Kamp says.
94% of people in new poll say financial stress is harming our home life
Source link 94% of people in new poll say financial stress is harming our home life