05 March 2007

Consumers Feeling The Squeeze

Reader RS sent us this link with some bad statistics relating to debt:
Interest rates put brakes on new vehicle sales

But things are beginning to look tough for consumers. This week, it was reported that some households were having difficulty financing their record high debt. Credit card and mortgage debt, reportedly in arrears by three months or more, reflected their plight.

Arrears for credit debt surged 71.5 percent in December last year compared with December 2005. Mortgage debt rose by 18.5 percent year on year. It was reported last year's four interest rate hikes had added about R14 billion a year to the interest cost of outstanding debt.


Credit debt arrears are up 71.5% year over year. That has to be ringing alarm bells somewhere in the Reserve Bank.

No comments: