South Africans are turning to personal loans as financial lifelines

VAAL TRIANGLE - Statistics from DebtBusters’ second quarter 2023 Debt Index reveal a significant trend in personal loans as a vital lifeline for many South Africans. The head of DebtBusters, Benay Sager, says the average loan size has increased by 78% since 2016, and 95% of consumers who applied for debt counselling during the second quarter of this year had a personal loan. Sager says these findings underscore the challenging economic environment that has influenced borrowing behaviors. He says consumers are using unsecured credit to supplement their income.