How to Prepare for Rate Hikes
Gill Marcus, governor of the South African Reserve Bank, has stated that South Africa is in a rising interest rate cycle.
According to Hein du Plessis, managing director at DebtSafe, South Africans should take note since the average consumer spends over 75% of their income on debt repayments. An increase in interest rate will most definitely affect those repayments, reducing consumers’ available cash.
In this Fin24 article Hein talks about how consumers can pro-actively withstand the impact of an increased interest rate, how consumers can protect themselves from debt and how to minimise existing debt. Hein also explains the difference between debt consolidation and debt counselling.