50 Basis Point Increase in Repo Rate

South African consumers are reeling once more, as the Reserve Bank has again hiked the repurchase rate by 50 basis points, regardless of the country’s slow economic growth. This increase came into effect 31^st March 2023, and our Debtco Group Debt Counselling service is becoming more urgent and pertinent amidst the financial struggles so many individuals are facing.

An unstable economy is making it more challenging for households to afford the cost of living. Many average earning individuals are now unable to manage their expenses and afford their debt, in light of continuous threats to their financial stability since the pandemic in 2020. The cost of everything from petrol to groceries is also skyrocketing, causing many to panic and eliminate most unnecessary spending. This latest repo rate increase is the ninth one since November 2021, which is when we first found ourselves faced with a multitude of interest rate hikes. These continual increases place great pressure on consumers, which is something we are well aware of at Debtco Group. If you’re not coping with your budget and expenses, you are not alone.

The Reserve Bank Governor explained that some of the main reasons for the most recent interest rate hike include elevated prices on a global scale, continuous loadshedding and global geopolitical tension. Unfortunately, there is nothing that consumers can do but try to keep up. The problem with the constantly rising repo rate is that consumers with debt are now more inclined to struggle with their repayments. If you are not able to cope with your debt, you could find yourself borrowing money to pay back creditors, avoiding calls from creditors seeking payment, and feeling overwhelmed by financial responsibilities you can no longer manage.

At Debtco Group, we offer a reputable Debt Review service that is National Credit Regulator (NCR) Approved. We are familiar with the plight facing individuals who are in over their heads with debt repayments, and we have a solution to ensure you can get your finances back on track. With our help, you can look forward to immediate relief from your financial obligations. Our team of professional Debt Counsellors will work with you to restructure your debt according to your means. We are here to guide you towards financial restoration.

Every time another repo rate increase is announced, consumers have to restructure their finances and find balance in their budgets. Eventually, your available income may be stretched too thin, as loans become more difficult to repay and costs keep risings. The result is that many consumers cannot afford to pay their debts and afford their basic living expenses, which indicates over-indebtedness. Get in touch with us today for an effective Debt Review service.