Consumer Credit Who you gonna call?
The numbers here are, as always, on the impenetrable side. For eg: there is an ongoing recovery in consumer credit, with R67.5billion lent for the second quarter – up 9.75% in the first quarter, and a whacking 33.2% on last year. This is generally considered a Good Thing, pointing to something of a recovery in our consumer-led economy, where over 60% of economic activity takes the form of, well, shopping. However, and it’s a biggie, over 11 million South Africans are now struggling with debt, according to, OK, debt counselling outfit Debtbusters, who have a certain vested interest in the subject.
Comment: Tricky stuff to negotiate, in the light of new thinking that suggests the Great Depression was caused by consumers over-investing and under-spending.