All these price increases and the debt are pushing people back into poverty from the middle-class.
They're paying a lot of taxes but they're not getting a lot of tax breaks. They're earning more than lower-income people but not enough to cover all these price increases.
The forecast for economic growth is still below 1% and consumers are literally borrowing more just to survive," says Clement Manyathela.
"In South Africa, we are very, very lucky to have the best legislation with regards to helping overindebted people. It’s called the National Credit Act. It makes debt counselling available, a process by which you pay off your debt in lower instalments over a longer period, so you have enough left to pay for your living expenses.
It protects consumers against credit providers who want to take legal action," adds Neil Roets, CEO of Debt Rescue.
