SA is drowning in debt

schumi

schumi

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DURBAN - South Africans are drowning in debt despite a slight drop in the number of people being summoned to court for owing money.

According to Statistics South Africa, in June this year, Gauteng had the highest number of cases (17 603) followed by KwaZulu-Natal (8 800).

However, these are also the provinces with the biggest populations.

Nationally 48 169 summons for debt were issued, valued at more than R350 million.

The value of civil default and consent judgments for KZN came in at more than R42.3 million for June this year. The figure for Gauteng was more than R100 million with the Western Cape second at about R66 million.

Statistics South Africa collected the information from 203 magistrate’s courts around the country.

It represented about 98% of all cases countrywide.

Julie Smith from the non-governmental organisation Pietermaritzburg Agency for Community Social Action said the slight decrease was unusual.

She put it down to banks making it harder for people to borrow money and the fact that those from lower income households were generally excluded from these types of credit. They went to informal money lenders.
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More at : https://www.iol.co.za/dailynews/sa-is-drowning-in-debt-10848009
 
Its these store type cards like Edgars etc, people wrack up huge debts thinking its free money
 
The unemployment figure stands at almost 30% and the people keep on borrowing money like there is no tomorrow!
 
The lady who works for us had furniture debt totalling R20 000. She closed her bank account thinking they'd never find her.

They did and it took years to pay off.
 
Last edited:
Tman* said:
True figure is closer to 50%
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Employment Rate in South Africa decreased to 43.30 percent in the second quarter of 2017 from 43.74 percent in the first quarter of 2017. Employment Rate in South Africa averaged 43.21 percent from 2000 until 2017, reaching an all time high of 46.17 percent in the fourth quarter of 2008 and a record low of 41 percent in the first quarter of 2004.
https://tradingeconomics.com/south-africa/employment-rate
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South Africa's unemployment rate came in at 27.7 percent in the second quarter of 2017, unchanged from the previous period's 13-year high. The number of unemployed fell by 37 thousand to 6.18 million while the number of employed declined by 113 thousand to 16.10 million.

A year earlier, the jobless rate was recorded at at 26.6 percent.
In South Africa, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. This page provides - South Africa Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Africa Unemployment Rate - actual data, historical chart and calendar of releases - was last updated on August of 2017.
https://tradingeconomics.com/south-africa/unemployment-rate
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The definition is important. If you stop searching, you won't count as unemployed anymore.
 
Johnatan56 said:
The definition is important. If you stop searching, you won't count as unemployed anymore.
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It is tricky as a woman who stays at home and is supported by her husband is technically not searching for a job either. And that certainly isn't in the same category as someone who has simply given up and is living off their grandmother's pension.
 
infscrtyrisk said:
Because they keep purging the bad credit records in order to stimulate the economy, or for some other reason?
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No education in school.

Tax
Managing money
Debt

That should be in schools. It must form part of the syllabus.
 
Ain't it the same in most other countries?

In the USA they hand out credit cards to anybody lol
 
Thor said:
I blame the government.
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Almost correct.

The correct item to blame is the central banking system and fiat currency. They make the act of lending money ridiculously cheap and risk free.
[video=youtube;gue9Q6wgdjQ]https://www.youtube.com/watch?v=gue9Q6wgdjQ[/video]
 
konfab said:
Almost correct.

The correct item to blame is the central banking system and fiat currency. They make the act of lending money ridiculously cheap and risk free.
[video=youtube;gue9Q6wgdjQ]https://www.youtube.com/watch?v=gue9Q6wgdjQ[/video]
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Definitely the biggest issue, but I young adults are educated in finance and how it works they'll see through the BS.

But yes ultimately it will be a multi front effort.
 
Thor said:
Should be taught at school
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People in cushy taxpayer guaranteed jobs with their taxpayer guaranteed pensions and taxpayer guaranteed medical aid are the last people on the face of the planet I would pick to teach kids about financial responsibility.
 
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