The overdue balance on mortgages increased by R550 million compared to last quarter, and has seen a 76% increase year-on-year.
For the second quarter in a row there was a decrease in the number of new retail loan accounts. The number of retail account holders has dropped by roughly 300,000 accounts since Q1.
Roughly half of credit active females are defaulting on at least one loan, half of which are retail accounts. Just over a quarter of all retail accounts are held by females aged between 20 and 45 who earn less than R5 000 a month, and 3 out of 4 of these women classify themselves as unemployed. These retail account holders are on average almost 5 months in arrears on one or more payments, and 56% of the current balance is overdue. The imbalance in retail account holders is the largest contributing factor to the debt inequality between men and women.
For every ten credit active consumers, four have all of their loans in good standing, while three have at least one loan that is nine or more months in arrears.
Eighty20 and XDS Credit Bureau have partnered to create a quarterly Credit Stress Report. This report highlights the impact of economic forces on the South African consumer, with particular focus on consumer credit behaviour. All credit data in this report was sourced from the Eighty20 / XDS Online Credit Portal.
In addition to providing all Credit Bureau data on a web-based portal, Eighty20 can also triangulate this data with internal data and external secondary data to assist with personalisation and segmentation. We have also created a Financial Wellness Diagnostic that gives employers a view of staff indebtedness, levels of financial stress and the resulting cost to the company. The online data portal contains aggregated information on all credit users in South Africa. It allows users to see the distributions of credit products and users by age, gender, income, location, presage score, credit holdings, impairment and arrears status, etc. If you are a SACRRA member, you can drill down and see the credit holdings of your customers, where they have taken out other credit, and how they are performing on those products. Call us for more information.