Guiding consumers since 2009

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 Everything you should know about tax auto assessment

In 2019, the South African Revenue Service (SARS) launched a system, which was dubbed an “auto assessment”, to assist taxpayers with their annual tax returns. But what does this system entail, and how will it impact you?

What does it mean to be a registered Financial Services Provider?

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

Should the retirement age change?

Across the world, people are retiring later than they used to. However, retirement products are centred around set retirement ages at which point you’d be able to access your retirement savings. But how applicable is the current retirement age in South Africa?

Everything you need to know about wills

Death can leave a lot of confusion and chaos. What happens to your possessions when you die can have a profound effect on those you leave behind. But you can soften the impact by drawing up a will.

Deals

Get 30% off your gym membership with Absa student account

Price: Available on request
When: Daily
Where: Nationwide

Get 10% discount on Rentalcars.com

Price: Available on request
When: Daily
Where: Worldwide

Get up to R5 back in rewards points when buying fuel

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions