Despite a marginal decrease in consumer debt, the financial strain on South Africans has intensified. The country faces a steep 46% inflationary impact, compounded by surging electricity tariffs and fuel prices.

Moreover, the average interest rate for unsecured debt has hit a worrying peak, reaching an eight-year high of 26% annually.

Debt Busters' quarterly Debt Index provides a detailed examination of new applicants seeking debt counselling.

"We analyse various factors such as debt and income levels, along with other indicators, to assess the financial health of consumer groups and the broader SA consumer base," stated Sager.

--ChannelAfrica--