Cape Town - As South Africans continue to recover from two years of Covid-19-induced financial strain, a number of recent separate surveys have shown middle income earners are struggling to meet their financial commitments.
The latest statistics by Statistics SA (Stats SA) of civil cases for debt, released last week, showed that in May, 12 204 civil judgments for debt – amounting to R311.4 million – were recorded.
The survey of civil cases for debt covers a sample of magistrates’ offices in South Africa and collects information regarding civil cases recorded, civil summonses issued and civil judgments recorded to provide information on the extent of unpaid debt in South Africa.
Statistician-General Risenga Maluleke said the data showed that the largest contributors to the total value of judgments were money lent which came to R89.4 million, or 28.7%, and services which hit R57.3 million, or 18.4%.
The latest Old Mutual Savings and Investment Monitor (Omsim) survey into how South Africans are spending and saving as well as their priorities regarding their finances showed that some people have resorted to extreme measures to make money.
Old Mutual Knowledge and Insights head Vuyokazi Mabude said: “The survey has also shown that the desire for higher returns is driving people to consider riskier investments and even resort to gambling to make ends meet.”
The Omsim survey showed that 52% of those surveyed have been dipping into savings to make ends meet, and 40% of respondents indicated they had to borrow from friends or family to make ends meet.
It showed 35% are falling behind on paying household bills, 26% are behind on credit card payments and 25% are behind schedule with store card payments.
A recent report by FNB said the average middle-income consumer, earning between R180 000 and R500 000 per annum, survived on 20% of their monthly salary for more than 20 days in a month as it took an average of five days to spend up to 80% of their monthly salary.
Trade union UASA spokesperson Abigail Moyo said they were deeply concerned about the hefty affordability crisis affecting its members and other South Africans.
Moyo said: “As South Africans face fuel, food, basic services and goods price hikes every month, the constantly growing living cost is increasing, while disposable income is shrinking.”