According to Haley Parry, facilitator of 1Life’s Truth About Money (TAM), a free financial education and literacy service, there are a lot of poverty-stricken high-income earners who do not have two coins to rub together and have to constantly borrow to make ends meet.
“There are people who use a large part of their income to pay debt; we need more people investing and saving, it’s one of the ways the poverty cycle can be broken,” Parry said.
According to research by Statistics SA, poverty is on the rise, with more than half of citizens dirt poor. The poverty headcount has increased to 55.5% from a series low of 53.2% in 2016, translating to 30.4million citizens living below the breadline.
Poverty is actually harsher on the income earners, because their income prompts them into the vicious cycle of spending and borrowing way beyond their means.