“Consumers who swipe their cards left and right end up having more and more holes to fill with too little money. They can’t shy away from this ‘no-thinking, just swiping culture’ that has been created. This type of behaviour can cause serious damage to mental health, physical well-being and financial prosperity,” says Oberholzer.
According to DebtSafe’s survey, 46 percent of the more than 1000 respondents said they were not up to date with their debt repayments.
Oberholzer says respondents typically indicated they were in arrears with retail credit agreements, such as clothing and store accounts (44 percent), and credit cards and overdrafts (30 percent).
She says that, according to Old Mutual’s 2019 Savings and Investment Monitor, 29 percent of consumers surveyed mainly use a credit card for everyday expenses, and the main reason that 67 percent of consumers use a store card is to buy things that they don’t have the cash for.