JOHANNESBURG - Rising interest rates and worsening inflation have hit South Africa's working class hard, pushing them into debt and struggling to make loan repayments.
READ: Cost of living | Light at the end of the tunnel on food prices
Managing Director at Novare Investment Solutions, Lulamile Makasi, says difficult economic conditions are making it harder for the working class to balance their budgets.
However government has introduced a new law which allows people to have access to one third of their pension fund which will assist in decreasing their financial burden.
He said, "it's a sad reality in that things are difficult for many reasons. People are finding themselves having to service their debt more than using the money for savings and other things they need to keep households going. We've seen increase in inflation which has a direct impact on interest rates which makes it difficult for people to service their debt."
"Now, with the Two Pot System, the government is saying what can we do to assist people to have access to their retirement contributions."