STATISTICS South Africa (StatsSA) has announced that the South African economy has moved into recession, this after a decrease of 0.7% in gross domestic product (GDP) was reported during the first quarter of 2017, following a 0.3% contraction in the fourth quarter of 2016.
“This announcement indicates a gloomy picture ahead for consumers”, Mpho Ramapala, manager education and communication at the National Credit Regulator (NCR), said.
The National Credit Regulator would like to caution consumers about taking unnecessary debt during these trying times.
Consumers should continuously assess their financial position to make realistic financial decisions
“We would like to reiterate our advice to consumers on how to attain financial well-being, and in this regard we recommend that consumers should scale down on unnecessary and luxury expenditures and to live within their means. Consumers should also continuously assess their financial position in order to make realistic financial decisions”, said Ramapala.
“Consumers who are debt stressed should not despair, and should communicate with their credit providers for solutions into their situations. Over-indebted consumers can also seek advice from registered debt counsellors or alternative dispute resolution agents”, she added.
Credit providers are reminded to lend responsibly to consumers in compliance with the affordability assessment provisions of the National Credit Act.
For additional information, as well as a comprehensive list of registered entities such as credit providers, debt counsellors and alternative dispute resolution agents, consumers can visit the NCR’s website: www.ncr.org.za, or contact the NCR on 0860 627 627 and firstname.lastname@example.org.