South African Middle Class in Trouble

South African Middle Class in Trouble

South African Middle Class in Trouble

South Africa is renowned for having one of the greatest wealth-gaps in the world. Following the fall of Apartheid, the gap between rich and poor began to further separate. While the rich continue to become richer, the poor still remain poor. In the middle of this divide lies the middle class. Although considered “affluent” to an extent, the middle class have always fallen to either side of the scale in times of economic unrest.

With the impending tax inflations and interest rate hikes, the middle class citizens of South Africa may face some dire consequences. These citizens may already be struggling or are close to falling into the line of fire – in terms of economic strife. Instability is what gives this such a volatile and dangerous position to be in. No matter how high or low you rank in the league of “middle class”, you are going to find yourself in trouble regardless.

Many middle class citizens have fallen into the debt trap. If they haven’t yet, there is a high chance of them doing so in the future. This leads to even more financial instability, as repaying debt can already contribute to the problem faced by price increases. This means that many of these consumers paying debt will need to cut back on their debt contributions – in order to retain their standard of living. This can be even more detrimental to consumers with lower incomes and larger amounts of debt.

With petrol increasing by more than R1.20 per litre, alcohol and cigarettes being heavily taxed, electricity rates raised by nearly 10% and general necessities and food items rising in price, it is easy to understand how middle class citizens are at risk of accumulating more debt. This is the result of having to swipe credit cards to start covering living expenses – thereby prolonging the cycle of debt. This can also suck consumers into debt, despite their best efforts in avoiding it. It is a cruel cycle that is much easier to fall into than it is to get out.

Do not be discouraged, there is a solution to alleviate the pressure faced by these glaring problems.

Debtco Group offers a lifeline to all that are willing to take the leap towards financial freedom. With our team of knowledgeable debt counsellors, we provide a service that is tailored towards helping our clients reach their dreams of a debt-free future. Through the process of debt counselling, your creditors will not be able to take legal action against you, buying us time to draw up a payment plan that will work for you.

No matter the position you may currently find yourself in, Debtco Group is here to function as your beacon of hope. From sinking in debt to a recent and risky financial decision gone wrong – we have the means to help you escape the cycle of debt. For more information pertaining to the services we offer, fill out our online form or contact us today.

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