National Credit Regulator (NCR) said consumers would look to borrowing after spending recklessly last year, while job losses and unplanned costs such as medical aid also put pressure on pockets.
NCR spokesperson Didi Sebothoma said consumers struggled last year following the one percentage point rise in the value-added tax (VAT) while runaway fuel hikes also compounded the situation.
Sebothoma, however, said the situation had improved.
“Statistics from the NCR shows that the consumer credit health has slightly improved from 38.9percent to 37.4percent,” Sebothoma said. “This number signifies consumers/accounts that are three or more months in arrears.”