Last week the Reserve Bank's monetary policy committee (MPC) left the repo rate unchanged at 5.5%, which kept the prime lending rate at 9%

Since December 2010 the MPC has left the repo rate unchanged at a more than 30-year-low level but consumers seem not to use this friendly environment to reduce their debt burdens.

Arrie Rautenbach, head of retail markets at Absa, said: "The bank's decision implies that consumers in debt as well as prospective buyers of vehicles and homes have additional breathing space."

"With the national debt-to-income ratio remaining relatively high at 74.6%, this suggests that consumers may not be taking advantage of the lower interest rates to pay off their debt," he warned.

"Customers applying for vehicle finance should opt for cars that fall within their budgets to allow for insurance and to consider additional cover that mitigates loss," he said.

Rautenbach warned consumers: "The only way to succeed financially over the long haul is to control your spending. The current economic climate should serve as an alarm clock."

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Thu Jun 20 01:48:07 SAST 2013 ::

May 28, 2012

tpaz

How do you reduce debt if one can hardly make ends meet? Toll gates are coming....
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May 31, 2012

ndhandhazi

deal with the unprotected loans from FNB. They do not conform to the credidt act/ law.
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Jun 19, 2012

Mnikazi

How can you live without debt in this low income earning times.
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Jun 20, 2012

Phuphethakatha

@tpaz
How do you reduce debt if one can hardly make ends meet? Toll gates are coming....
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Eish ! Say that again babes. We're so overstretched there is almost very little chance of redemption...
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Jun 27, 2012

GlorytoGlory

Goverment has to force companies to pay people accordingly, we under paid, just working for bread and meal meal, so how can we control our spending? Oh God help your people
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