Original title: a large number of wealthy people in South Africa began to default on loans Source: CCTV News client
According to South African media reported on June 13, the latest South African credit survey data from the (Experian) credit bureau show that the ratio of delinquent borrowers in South Africa for the first time began to rise in the first quarter of 2021, especially among the wealthy.
Experior said that after the relaxation of control of the epidemic, South Africa's economic activity began to increase, related consumption increased simultaneously, but the corresponding income did not keep up with the pace of consumption. So South Africa's Consumer default Index (CDI) in December 2020）It rose from 4.02 to 4.33 in March 2021, with car loans and credit card personal loan delinquencies worsening the most. Experil said that this deterioration is related to consumer demand. After the outbreak of COVID-19, commuting is no longer essential and the importance of vehicles has declined, while South Africa has long had the habit of using revolving credit cards to pay for daily living expenses. When income decreases, spending increases, the cycle begins to crack.
The South African rich refer to the wealthy members of the upper class in South Africa, who have economic freedom and can afford expensive houses and cars, 54% own one house and 25% own multiple properties. (Zhou Tao, a reporter from the front desk)
(editor Li Mingyi)