Middle income earners have biggest credit card debt: expert

WEB_PHOTO_CREDITCARDS_120215

South African consumers' biggest concern remains servicing their debts.

South African consumers' biggest concern remains servicing their debts.

WEB_PHOTO_CREDITCARDS_120215

South African consumers' biggest concern remains servicing their debts.

South African consumers' biggest concern remains servicing their debts.

JOHANNESBURG – Middle income earners have the biggest credit card debt, wealth coach Samke Mhlongo said.

This is mainly because  middle class earners are often trapped by their payslips and can afford big credit lines.

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“They [middle income earners] have the income and payslips to be afforded big lines of credit. We tend to think that the bank is sending SMSs saying I qualify for x credit line, then I should be good for it. I should be able to afford it,” Mhlongo said, referring to the thinking of some customers.

“They are maybe measuring you just against the information they have. So you may have four different banks offering you the max and now you are four times over indebted.”