general (web AX & AN)
leseho Manala
lesehom@caxton.co.za
A gloomy future has been predicted for consumers after the recent announcement of a recession by Statistics South Africa.
The warning was released by the National Credit Regulator (NCR) following a 0.7 per cent decrease of the gross (national) domestic product.
“The announcement indicates a gloomy picture ahead for consumers,” said Mpho Ramapala of the NCR.
“The recession means a reduction in the value and purchasing power of the rand and that consumers will have to pay more for everything [which includes] their basic and other needs.”
Ramapala cautioned the public about taking unnecessary debt during these trying times. “For their financial well-being, we advise consumers to scale down on unnecessary and luxury expenditures and to live within their means. They should also assess their financial position continuously in order to make realistic financial decisions.”
She advised those who are in debt to not feel stressed or in despair but to communicate with their credit providers for solutions and to seek advice from registered debt counsellors or alternative dispute resolution agents.
Ramapala also reminded credit providers to lend responsibly to consumers in compliance with the affordability assessment provisions of the National Credit Act.
Edited by Stacey Woensdregt
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