The tendency of lending because they want to and not need to has landed the country’s youth deep into debt and most are battling to swim out of their predicament, Transform SA gathers from the Credit Ombud, Manie van Schalkwyk.
According to the Credit Ombud, a staggering 92% of the record 7164 disputes it closed in 2013 involved South Africans aged between 18 and 35. 39% of the 5878 disputes came from 18 to 35-year olds.
“It is somewhat troubling to find that such a high number are already facing credit related challenges at such a young age,” van Schalkwyk commented.
On the other hand, there was an encouraging trend where youth were taking control of their credit problems and seeking help, she observed.
The Credit Ombud Annual Report noted that disputes against non-bank credit providers continued to rise, growing 57% to 3 483 in 2013. The largest numbers of complaints were directed at clothing stores, furniture stores and micro lenders.
The Credit Ombud helps consumers resolve complaints they have with credit bureaus and non-bank credit providers, such as clothing and furniture retailers.