Financial strain still tough on consumers

By Staff Writer
Finmark Forum's most recent its Consumer Financial Vulnerability Index (CFVI), which was released on Thursday, reports that consumers have been hit hardest by price increases, job losses and even HIV/Aids.

People who fall in the R30 0000 to R100 000 a year income bracket, were the most vulnerable according to the survey.

"Although the rate of job losses declined towards the end of 2009 and in the first quarter of 2010, the number of people losing jobs is putting more consumers at risk," Finmark Forum said.

As the cost of living continues to skyrocket, some consumers are forced to pay off their debt over a longer period of time, resulting in higher interest while others had to cancel life policies just to make ends meet.

"Other indications of continued financial stress are the increasing number of consumers making arrangements to pay off their debt over a longer period or cancelling policies to cover household expenditures."

The good news is that the overall vulnerability of consumers did lessen during the first quarter of 2010 but the outlook for the future is not so good.

"The results indicate that consumer financial vulnerability, after first increasing in the third quarter of 2009, has now declined for two consecutive quarters as the economy picked up momentum and consumers adapted their lifestyles downwards."

"These include high levels of unemployment and poverty, low skills levels, low labour market absorption rates, high levels of indebtedness and defaults on repayments, ineffective service delivery, and the impact of HIV and Aids."

Recent Articles

Featured Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Momentum vs. The people: Who is at fault?

This week has seen insurance giant Momentum in the hot seat as debate sparked around its initial refusal of a R2.4 million life insurance pay-out. The deceased was killed in a hijacking but lost the right to claim upon failing to disclose a raised blood sugar condition at the inception of the policy, in 2014. Momentum has since agreed to the pay-out.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)