SA's middle class getting poorer: Debt Rescue

Debt Rescue is predicting another bleak year for the economy.

JOHANNESBURG - Janu-worry or not, South Africans are drowning in debt.

The country's economy continues to shrink while the cost of living continues to rise.

Debt Rescue is predicting another bleak year for the economy.

"We've seen a lot of petrol price increases, interest rates during the past couple of years and the reality is all these costs filter down to the price of goods and services," said Debt Rescue CEO Neil Roets.

READ: SA economy contracts by 0.6 percent in third quarter

"People just cannot afford to pay all those increases and indirect effects thereof because of the fact that their salaries are not growing in line with all the price increases that we're seeing."

Roets said the country's middle class is getting poorer.

Increased taxes and the inability to keep up with inflation and price increases are hitting them hard.

He said it's unfair that the middle class is being forced to carry the economy.

READ: Debt relief a double-edged sword for South Africans living on loans

"All these price increases and the debt that's making life so difficult are pushing people back into poverty from the middle class and that's very unfortunate. They're paying a lot of taxes but they're not getting a lot of tax breaks.

"They're earning more than the lower-income people but not enough to cover all these price increases, so they're in a very difficult situation."

Source
eNCA

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