Debt clouds gather over South African consumers

Now I know why people who earn half my salary have double what I have.
So in the end I also have to suffer with higher interest rates.
 
Economist John Loos says households’ debt-to-disposable income ratio stands at 76 percent.
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Do they mean total debt as a percentage of annual income, or debt repayments as a percentage of monthly income?
 
lol @ quote but yah.. e-tolls are coming. Wonder if it will ever come right as everytime i look everything is just going bad
 
I have almost no debt (homeloan) but things are just getting so expensive. I nearly feel the need to cut back on my discresionary savings. I dont want to.
 
Yea.. friends of ours, they bought caravan, 4x4 etc on normal salary (with overtime). His wife stopped working... so yea.. can see people spend more than ever.

I try to avoid debt at all cost.
 
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Also know plenty people who I'm sure live beyond their means.

Even guys in the financial field in our office who you'd think would know better , they all drive brand new vehicles, one guy didn't even have his license yet but car is parked outside.

He had to pay a guy a small fortune to drive the thing from PE to here as well.

Another thing is cell phones, everyone seems to have the latest and greatest, I'm jealous :(
 
Hemps said:
Another thing is cell phones, everyone seems to have the latest and greatest, I'm jealous :(
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Have you seen the guys here go gaga over the Galaxy S4? Screw that, I'd be content with the Galaxy pocket.
 
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It seems to me, most of these debt is going into cars . I was looking at a new car the other day and if you do the calculations it's just freaking insane. I don't know how people are justifying it. Even a R200k car, the monthly payments + insurance is more than a R800k+ type of house.

It's quite ironic ,i'm living in a complex where all these middle class black families are RENTING. Guess what all of them are driving? BMWs,Mercs and overpriced things like Mini Coopers , and not old models, brand new ones. So there i am with my ancient bakkie, but at least i'm owning my place...

The fact that there's always months of "waiting lists" on new cars these days, is quite telling. I wonder how much of people's salaries are going -just- into their cars. Ignore home loans and clothing debt, just the car + insurance and any loans taken out to make those balloon payments....
 
It's quite ironic ,i'm living in a complex where all these middle class black families are RENTING. Guess what all of them are driving? BMWs,Mercs and overpriced things like Mini Coopers , and not old models, brand new ones. So there i am with my ancient bakkie, but at least i'm owning my place...
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Status, we also rent to people and the cars they drive BMW's etc, pricey vehicles yet they rent.
Saw the man of house pays R10 000 p/m on car repayment!
 
These cars are just expensive with deposit, 35% and 72 months repayment period...R6000+ on car installment is just insane if you not taking home R30000, I think...Wish i could take 25 grand home..
Always wonder how come there are so many people driving nice new cars while supporting a family..some people are getting paid....
 
Heard a black guy at a previous company I worked at say, he's looking at the new Jaguar...repayments with insurance was working out to R12k....and then he says, that's not bad!!! Shocking!

My brother recently got into an engineering company straight out of Uni earning a graduate salary. He had money saved up and bought a Corsa Light, cash. A black guy that also got into the graduate program immediately went out looking for a car, his choices...Audi A5, Mercedes, BMW! He eventually chose a Audi A5 with installments working out to R8k pm. My bro even asked him why those cars and he said " I need to show my family that I am an engineer now"

I just don't understand this type of thinking!!!!
 
... lol really is insane. but yah cars cost a LOT. Was thinking of replacing mine as maintenance costs are coming but cost of new one that isnt compact is on avg 250-300k minimum .. :eek: uh yah i think i will wait till my car falls apart lol
 
krycor said:
... lol really is insane. but yah cars cost a LOT. Was thinking of replacing mine as maintenance costs are coming but cost of new one that isnt compact is on avg 250-300k minimum .. :eek: uh yah i think i will wait till my car falls apart lol
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Indeed.
Take the money you would be paying into a new car's repayments and put it in your bond or some other short-notice investment, and use that as a repair/maintenance fund. Pretty sure you'll come out WAY ahead ;)
 
Sinbad said:
Indeed.
Take the money you would be paying into a new car's repayments and put it in your bond or some other short-notice investment, and use that as a repair/maintenance fund. Pretty sure you'll come out WAY ahead ;)
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Exactly what i'm doing ;) buying apartment for rental + staying in instead. Figured i'd get that right 1st.
 
Sinbad said:
Indeed.
Take the money you would be paying into a new car's repayments and put it in your bond or some other short-notice investment, and use that as a repair/maintenance fund. Pretty sure you'll come out WAY ahead ;)
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That is precisely my plan.

I have just ditched my Merc, and am driving a 12 year old double cab now... I will spend slightly more on petrol now, but I've halved my repayments, halved my insurance and maintenance costs have gone through the floor.
 
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