NCR concerned as South Africans keep getting deeper into debt
The National Credit Regulator (NCR) released the Consumer Credit Market Report and the Credit Bureau Monitor on Wednesday.
These reports are based on the data submitted to the credit regulator by registered credit providers and credit bureaus.
“The total outstanding consumer credit balances (or gross debtors book) as at June 2021 was R2.05 trillion, representing an increase of 0.95% quarter-on-quarter and of 4.64% year-on-year,” said the NCR.
Mortgage and vehicle finance increased by significant amounts on a quarter-to-quarter basis.
“The value of new mortgages granted increased by R2.32 billion (4.27%) quarter-on-quarter. Secured credit which is dominated by vehicle finance, increased by R2.23 billion (5.45%) quarter-on-quarter,” the NCR said.
The NCR adds that the number of consumers classified in good standing have decreased by some 860 000 to 16.14 million consumers.
“It is by no doubt that Covid-19 has had a financial impact on consumers, as some have lost employment whilst others have had a reduction in their income. This has therefore put a lot of strain on immediate families and even extended families.”
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