1 % Vat have impacted Consumer Debt Negatively
Consumer Debt In South Africa increased with the Vat changes of recent. George & Mosselbay consumers are already struggling with high living cost going up monthly. In all areas of South Africa Consumer Debt is getting higher and increasing faster than the income bracket of the consumer. This forces the consumer to have less and less funds available to make payments on the accounts and have enough for living expenses.
Since the 1 April 2018 the vat was increased by 1% have impacted the levels of consumer debt. It may sound so little, but it makes a huge difference to the consumers expenses each month. We can see how 1 % has made an immediate difference on the consumers day to day pocket. In the tourist area of the Garden Route where most consumers are on a low salary bracket, and were already struggling to make payments on their debt consumer debt are higher than ever before. These consumers of the smaller towns like Mosselbay, George, Albertinia & Knysna has fallen into being depended on their debt to survive the month.
Debt can only be dealt with switfly by restructuring the debt payments for the consumer to a more affordable payment with lower interest rates form Credit Providers. Consumer debt must decrease for South African families to have a financial future.
They were already over-indebted before the Vat increase, but were balancing between being over indebted & surviving. The Vat increase changes this scenario not only for the smaller towns in the Garden route, but over the whole of South Africa consumer debt levels are huge. We are finding more consumers are seeking help in Debt Review due to not being able to make payments.
If you are struggling & this article has made you think. if you are in need of debt help.
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Let us do an over-indebted assessment to establish if you are in need of Debt Review.