Categories Business Tech World 88% of South Africans cannot afford even basic goods or services Post author By vanirexodus Post date February 21, 2022 No Comments on 88% of South Africans cannot afford even basic goods or services A new survey finds that 88% of South Africans struggle to afford even basic goods and services as a flood of cost of living continues to hit them from all sides. 72% say they will no longer be able to meet their household electricity needs when the proposed new 20.5% price increases come into effect in April. According to the latest Debt Rescue survey of more than 1,300 people, consumers said they needed to cut their budget for basic goods and services to manage their higher cost of living, and 76% say they don’t have enough money… A new survey finds that 88% of South Africans struggle to afford even basic goods and services as a flood of cost of living continues to hit them from all sides. 72% say they will no longer be able to meet their household electricity needs when the proposed new 20.5% price increases come into effect in April. According to the latest Debt Rescue survey of more than 1,300 people, consumers said they needed to cut their budgets for basic goods and services sharply to manage their increased cost of living, and 76% say they don’t have enough money to pay for the latter. to cover increases in fuel, electricity and interest rates, mainly because their salaries are not adjusted for inflation. “Consumers are in serious trouble against the backdrop of rising fuel and food prices and higher interest rates at the same time that unemployment is at an all-time high,” said Neil Roets, CEO of Debt Rescue. To make matters worse, the latest data from the Central Energy Fund predicts another R1.24 rise in the price of 95-octane gasoline inland in March, which will be one of the strongest monthly gains on record. ALSO READ: Food inflation: the culprit is mainly global developments – economist Can consumers afford food? It is unacceptable to put any more pressure on people at this point, although we understand that the Reserve Bank’s job is to help curb the CPI and high inflation. It is deeply disturbing to see the impact of the rising cost of staple foods on families, he says. “The staple food is the food that keeps families from going hungry and forms the basis of nutritious meals. Due to the high cost of these essential foods, many nutritious foods are taken off the family plate.” The January 2022 Household Affordability Index report from the Pietermaritzburg Economic Justice and Dignity Group shows a nearly 9% increase in the cost of the staple food basket for households. Roets says this means the average cost of a household food basket is now R4 401.02, compared to R4 275.94 in December 2021. The price of 15 of the 17 foods considered core foods that should reasonably be found in most homes rose. “The reality is that more and more consumers will buy these foods every month using their credit and store cards, creating a downward spiral.” He points out that food is the one commodity that consumers always have to pay for in cash, but when consumers get to the point where they have to buy food on credit, they get into very serious trouble, especially since they also pay high interest rates on credit. “It is a debt disaster, but it is often the only option now,” Roets warns. ALSO READ: SA consumers in unsecured debt trap, no real income increase since 2016 Taking on debt for basic goods and services He also warns that using debt to cover living expenses and to buy basic goods and services is a recipe for disaster. “As hard as it gets to balance your monthly budget, using credit is like digging a hole you can never climb out of.” If you’re already in this debt trap, Roets advises considering all your options, including consulting a registered debt counselor who can help you. ← SSA denies allegations that it harbors members who looted R1.5 billion → Accusations against Fraser ‘not only false, but also vindictive’, says his lawyer Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment.