Debt Payments in Jan 2022 vs Jan 2023

The year of 2022 had many consumers worked up over spiking increases in interest rates. The rising interest rates have had an effect on everything from the price of petrol to the cost of basic groceries and monthly household essentials. For the middle class, maintaining payments for debt, home loans and car loans have become increasingly difficult.

Every time the SARB (South African Reserve Bank) announces another interest rate hike, consumers with debt can expect their monthly repayments to go up as well. Consumers who have larger loans with longer repayment terms can expect bigger interest rate increases, which has been the case for Debt Payments between Jan 2022 and Jan 2023. Considering that more than half of South Africans with active credit were found to be over-indebted during 2022, we can expect that this percentage will get worse as the cost of debt gets higher.

Worsening economic conditions over the years have played a big role in the repo rates going up. Sadly, many consumers are now borrowing money to merely afford basic needs and get by. Experts indicate that it is unlikely we will experience much relief from these interest rate and price hikes in 2023, so consumers with debt will continue to feel the pressure.

During 2022, the Reserve Bank raised the interest rates in January, March, May, July, September and November. We already know to expect at least 2 more 25 basic point rate hikes between January and June of 2023, with no real indication of when relief can be expected. If you’re in debt, now is the time to take your money more seriously – if you are over-indebted, take charge now with the help of our professional Debtco Group team.

Debt Payments in Jan 2022 vs Jan 2023 differ a lot, especially when looking at large loans like home or car loans. A home owner who may have paid interest at the rate of 6.95% in January 2022 will now be paying 10.05%, which for a home loan of about 1 million, sees a home owner paying over R1, 500 more each month towards their home loan each month. This alone is a massive setback for any individual or family, but unfortunately it is only one aspect of the financial burdens they face, as the price of everything has skyrocketed, including electricity, gas and food.

At Debtco Group, we offer South African consumers assistance when they’re faced with insurmountable debt issues and over-indebtedness. Debt Counselling has the potential to turn your finances around. Let us know how we can help you today, by contacting our team of quailed and National Debt Regulator (NCR) approved Debt Counsellors.