Tough times ahead for consumers
NATIONAL - Hard times lie ahead for consumers amid petrol price hikes, ever-rising food prices, electricity tariff increases and the prospect of rising interest rates.
Consumers are feeling the price pain on so many fronts that they are likely to buckle if this carries on for much longer, economist Mike Schussler told Fin24.
“When the consumer buckles we are likely to see further economic decline; 2016 will be a very difficult year.”
“I think that the consumer will now start feeling all the extra pressure from higher food prices due to the drought, and the petrol and electricity hikes will just add to the slowdown of consumer spending.”
Drawing up a budget will help
Debt expert Neil Roets said it is important that consumers start setting up a budget.
“Here they must take into account their income, deductions and necessary living expenses to establish what they have remaining to pay towards their debt,” he explained.
“This is also where they can see where they might be able to make cuts where necessary. If at this point they cannot meet their monthly debt commitments, they are over-indebted.”
Roets added that embattled consumers shouldn’t wait until it’s too late to seek help from a debt counsellor.
The City of Ekurhuleni have also released draft policies for municipal tariff increases, which will be announced later this year.
