{"id":15357,"date":"2025-03-20T12:50:38","date_gmt":"2025-03-20T13:50:38","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=15357"},"modified":"2025-03-20T15:08:32","modified_gmt":"2025-03-20T15:08:32","slug":"government-delivers-a-fatal-one-two-punch-to-consumers","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/government-delivers-a-fatal-one-two-punch-to-consumers\/","title":{"rendered":"Government delivers a fatal one-two punch to consumers"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

South African consumers receeived no relief from the South African Reserve Bank (Sarb) on Thursday after the central bank’s Monetary Policy Committee’s (MPC) voted on keeping the repurchase rate in the country unchanged. <\/p>\n

Sarb governor, Lesetja Kganyago said that four members preferred this action, while two favoured a cut of 25 basis points.<\/span><\/p>\n

This means that the repo rate will remain at 7.5%, while the prime lending rate in the country will remain at 11%.<\/span><\/p>\n

The unchanged rate, coupled with a VAT increase of 0.5% confirmed for this financial year and a second <\/span>0,5% for the 2026\/2027 fiscus, has all but extinguished any hope of financial relief for South Africa\u2019s struggling consumers.<\/p>\n

This was according to CEO of Debt Rescue, Neil Roets.  <\/span><\/p>\n

Roets <\/span>warned that this fatal one-two punch delivered by government will decimate the lives of millions of citizens, who are sinking deeper into a sense of hopelessness with each financial blow. <\/span><\/p>\n

\u201cEven a small rate cut would have kept a glimmer of hope alive among embattled consumers who are desperate to dig themselves out of their financial abyss and are drowning in debt as a result of exorbitantly high interest rates. The additional burden of a VAT increase \u2013 no matter how small – on the majority of citizens, who are already grappling with high levels of unemployment and rising costs of essential goods, will take the nation to the point of no return,\u201d Roets told Business Report. <\/span><\/p>\n

\u201cIt is equally concerning that government has opted not to adjust personal income tax brackets in line with inflation, within the 2025\/2026 budget, as this effectively increases the tax burden on individuals, as salaries grow but tax thresholds remain unchanged,\u201d Roets added. <\/span><\/p>\n

\u201cThis, combined with the 12.7% electricity tariff hike that kicks in on 1st April 2025, will heighten financial strain and deepen the debt crisis among consumers.\u201d<\/span><\/p>\n

<\/span>\u201cRegardless of the economic factors – global and domestic – behind the decision, it will have a profound effect on taxpayers at a time when fluctuating inflation due to rising costs, has significantly reduced consumer purchasing power, by decreasing the value of money, leading to a steep decline in the standard of living, especially among lower income families. Realistically, this is where we are at right now,\u201d Roets said.<\/span><\/p>\n

\u201cIt is unacceptable that hard-working South Africans continue to bear the brunt of the highest interest rates the country has experienced in over a decade, along with the relentless increases in living costs, a water scarcity crisis that is rapidly escalating and food prices that place nourishing food out of reach of the most vulnerable among us,\u201d he added.<\/span><\/p>\n

The Debt Rescue CEO further said that South Africans are hanging on by their bootstraps with the average consumer spending 68% of their take-home pay on servicing debt. <\/span><\/p>\n

“Total <\/span>consumer debt<\/span> is now at some R2.3 trillion, with more than half of this being accounted for through bonds, according to the National Credit Regulator (NCR). <\/span>Data released by the <\/span>NCR<\/span>, reveals that consumers applying for loans and those in arrears reached a new high in the third quarter of 2024. In particular, mortgage arrears rose to 6.9% of outstanding loans, while payments that are between one and three months overdue also remain elevated,” he said. <\/span><\/p>\n

\u201cOne of the major factors that traps many citizens in a relentless debt cycle is the rising cost of credit due to existing debt. This is most evident with big purchases like home and car loans.  My advice to those who cannot break free from their financial constraints is to seek help from a registered debt counsellor who can assist them to manage their financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,\u201d Roets further added.<\/span><\/p>\n

BUSINESS REPORT <\/strong><\/p>","protected":false},"excerpt":{"rendered":"

South African consumers receeived no relief from the South African Reserve Bank (Sarb) on Thursday after the central bank’s Monetary Policy Committee’s (MPC) voted on keeping the repurchase rate in the country unchanged.\u00a0Sarb governor, Lesetja Kganyago said that\u00a0four members preferred this action, while two favoured a cut of 25 basis points.This means that the repo rate will remain at 7.5%, while the prime lending rate in the country will remain at 11%.The unchanged rate, coupled with a VAT increase of 0.5% confirmed for this financial year and a second\u00a00,5% for the 2026\/2027 fiscus, has all but extinguished any hope of financial relief for South Africa\u2019s struggling consumers.This was according to CEO of Debt Rescue, Neil Roets.\u00a0\u00a0Roets warned that this fatal one-two punch delivered by government will decimate the lives of millions of citizens, who are sinking deeper into a sense of hopelessness with each financial blow. \u201cEven a small rate cut would have kept a glimmer of hope alive among embattled consumers who are desperate to dig themselves out of their financial abyss and are drowning in debt as a result of exorbitantly high interest rates. The additional burden of a VAT increase \u2013 no matter how small – on the majority of citizens, who are already grappling with high levels of unemployment and rising costs of essential goods, will take the nation to the point of no return,\u201d Roets told Business Report.\u00a0\u201cIt is equally concerning that government has opted not to adjust personal income tax brackets in line with inflation, within the 2025\/2026 budget, as this effectively increases the tax burden on individuals, as salaries grow but tax thresholds remain unchanged,\u201d Roets added. \u201cThis, combined with the 12.7% electricity tariff hike that kicks in on 1st\u00a0April 2025, will heighten financial strain and deepen the debt crisis among consumers.\u201d \u201cRegardless of the economic factors – global and domestic – behind the decision, it will have a profound effect on taxpayers at a time when fluctuating inflation due to rising costs, has significantly reduced consumer purchasing power, by decreasing the value of money, leading to a steep decline in the standard of living, especially among lower income families. Realistically, this is where we are at right now,\u201d Roets said.\u201cIt is unacceptable that hard-working South Africans continue to bear the brunt of the highest interest rates the country has experienced in over a decade, along with the relentless increases in living costs, a water scarcity crisis that is rapidly escalating and food prices that place nourishing food out of reach of the most vulnerable among us,\u201d he added.The Debt Rescue CEO further said that South Africans are hanging on by their bootstraps with the average consumer spending 68% of their take-home pay on servicing debt. “Total consumer debt is now at some R2.3 trillion, with more than half of this being accounted for through bonds, according to the National Credit Regulator (NCR). Data released by the\u00a0NCR, reveals that consumers applying for loans and those in arrears reached a new high in the third quarter of 2024. In particular, mortgage arrears rose to 6.9% of outstanding loans, while payments that are between one and three months overdue also remain elevated,” he said.\u00a0\u201cOne of the major factors that traps many citizens in a relentless debt cycle is the rising cost of credit due to existing debt. This is most evident with big purchases like home and car loans.\u00a0 My advice to those who cannot break free from their financial constraints is to seek help from a registered debt counsellor who can assist them to manage their financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,\u201d Roets further added.BUSINESS REPORT\u00a0<\/p>","protected":false},"author":1,"featured_media":15359,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-15357","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/15357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=15357"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/15357\/revisions"}],"predecessor-version":[{"id":15358,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/15357\/revisions\/15358"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/15359"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=15357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=15357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=15357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}