This week saw the launch of an index that estimates to what extent South Africans who have defaulted on their debt repayments are making progress towards becoming financially healthy again.
Transaction Capital Risk Services released its Consumer Credit Rehabilitation Index (CCRI) for the second quarter of 2017, and compared consumers’ circumstances at the end of July with those in July last year.
Transaction Capital Risk Services is a technology-led, data-driven provider of credit management solutions in South Africa and Australia.
The CCRI is based on a sample from the company’s own database of over five million consumers in credit default. It uses an algorithm to estimate consumers’ ability to repay their debt and take positive steps towards financial rehabilitation.
The index shows that the rehabilitation prospects of South African consumers in default deteriorated by 1.1% in the second quarter of this year compared with the second quarter of 2016.