More than 26 000 people who were in debt had summons issued against them to appear in court during April, with the balance of the 31 000 summonses issued in the fourth month of the year being against companies.
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More than 26 000 people who were in debt had summons issued against them to appear in court during April, with the balance of the 31 000 summonses issued in the fourth month of the year being against companies.
Of the total amount of R242 million cases, South Africans accounted for R209m, with the balance being owed by companies. That translates into 83% of the value of all civil summons cases emanating from debt owed by ordinary citizens.
This is according to Statistics South Africa’s latest print on preliminary statistics of civil cases for debt for April. Overall, the agency noted that the total number of civil summonses issued for debt decreased by 16.4% in the three months to April compared with the same period a year ago.
Statistics South Africa said that, while several categories of types of debt – such as services or money lent – declined in terms of money owed and set to head to court, outstanding rent increased. Outstanding rent made up R30.2 million – or 12% of the debt against which action was taken.
The Western Cape saw the most summonses issued, followed by Gauteng and then Limpopo.
Debt Busters’ latest index for the first quarter of the year found that nine out of ten debt counselling applicants have a personal loan as more and more South Africans are “using personal and one-month loans as a lifeline”.
“The most vulnerable consumers, taking home R5 000 or less per month, use 76% of their income to repay debt. Those earning R35 000 or more spend 77% servicing debt. The ratios for these income groups are the highest since DebtBusters started analysing the data in 2016,” it said.
It added that “today’s consumers have 53% less purchasing power,” than in 2016.