I remember reading earlier this week that people are now spending 78% of their disposable income on servicing debt…apparently these are record numbers for SA and this in a record low interest rate environment. Also forgot to mention that I was talking to someone who has connections with one of the large loans companies in SA – they are currently writing over R400million worth of loans each month!
There has been much speculation about what the next move will be for interest rates but if these figures are true, then there is surely no way that the Reserve Bank can raise interest rates without killing the economy stone dead!
I think the SA economy could be in for some pain – or what am I missing?
