Consumers urged: no to debt during recession
Recession is a hard time in any circumstance, from increased rates to decreased value for money, consumers can feel the pinch out of nowhere. As South Africa enters into a technical recession, the National Credit Regulators have urged consumers to stay away from new or unneeded debts in our worsening economic climate.
In early June, Statistics South Africa announced that the country’s economy moved into a recession after the GDP contracted in two consecutive quarters- showing negative growth in the first quarter of 2017 and GDP contraction of 0.3% in the fourth quarter of 2016. While this is bad for the country overall, those with debt stress will have an even gloomier image in front of them.
The NCR has urged consumers to stick to a strict budget and not to take on any debt where possible. Not only debt, but daily expenditure as well, this is a time for saving what you can to ensure your financial future. This is not an economic climate within which you want to have outstanding debts, as in the worst case they could grow exponentially in comparative value. Living within means and adhering to a set budget is an ideal turn for this time, constantly reassessing your situation to best suit your finances. Creditors have also been urged to enforce stringent conditions when conducting the affordability assessment on consumers, complying fully with the provisions laid out in the National Credit Act.
As careful as you can be, things can always take a turn for the worse. When you find yourself drowning in debt, be sure to contact a debt counselor at the National Debt Advisors. Our professional team can help you lead a debt free life.