'Black diamonds' feel the credit crunch
Thembi Motaung, a manager at a South African legal firm, faced a painful choice when she started to fall behind in meeting hefty loan repayments on both her home and car.
"I had been defaulting on both my mortgage and car repayments for three months, so I had to choose which one to let go," said the 36-year-old mother of two who lives near Pretoria.
"I've been using public transport all my life so I found it easier to do without the car."
Having had to let go of her much-cherished Audi A4, Motaung joined a growing number of South Africa's so-called "black diamonds" who had fallen foul of the credit crunch and faced the heartache of repossession.
While a rise in interest rates, inflation and food and fuel prices have hit all sectors of South African society, research shows that the biggest sufferers have been members of the emerging black middle class.
2 comments:
I also read this article a while ago.
I think the "black diamonds" may be hardest hit, but that there is a broader problem - many South Africans live beyond their means, and have a dangerous attitude towards debt.
I'm grateful for the new credit act, and even the high interest rates we have at the moment! I hope it will encourage people to get out of debt, and start saving.
Francois
Keeping up with the Jones's
People (not just black diamonds, but most middle class south africans) attach way too much value to status symbols.
I know people earning about 30K per month, and spending 18 of that on car payments. Insanity!
If you are struggling to make ends meet why do you buy an Audi A4. What's wrong with a city golf or something.
I've been driving the same car for the last 11 years, and have a healthy bank balance to show for it. Keep pushing those interest rates!
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