Rate hike will have massive impact on consumers, warns debt company
CEO of Debt Rescue Neil Roets say the looming interest hike by the Reserve Bank could have a devastating impact on consumers.
Consumers will have to brace themselves for higher fuel prices and a series of interest rate increases this year, as the Reserve Bank aims to counter rising inflation due to increased fuel and energy costs.
The Reserve Bank is expected to increase the repo rate by 25 basis points to 4% on Thursday.
Last week Statistics South Africa said the consumer price inflation rose to 5.9% year on year.
“Consumers are already suffering especially after the Covid-19 pandemic, and now all the loans one has will increase and unfortunately salaries will not increase in line with the increase of the interest rate and also fuel price and electricity hike this definitely not good news for consumers,” says Roets.
He says consumers will have to always have a written budget and live according to it strictly.
“In that budget, there have to make a provision for unforeseen costs and have an emergency fund. If people find themselves indebted, they should contact debt counselors for help.”
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