Cape Town - South Africans are the biggest borrowers in the world, according to a recent World Bank survey, and 10.26 million people have accounts that are three months in arrears, the National Credit Regulator (NCR) says.
Credit Ombudsman Nicky Lala Mohan said the World Bank survey showed that South Africans had more debt than any other nation. According to the World Bank, 86 percent of South Africans have debt, followed by the Iranians, where 71 percent borrow money.
South Africans are battling to pay their debt, according to a NCR report, which shows that 22.28 million accounts have been in arrears for three months or more.
A recent amendment to the National Credit Act (NCA) has come into force to prevent overindebtedness. Mohan said South Africans’ debts were mostly home and car loans and credit cards, and many people who could no longer get credit turned to loan sharks.