By Bhekisisa Mncube
Durban - The KwaZulu-Natal MEC for Economic Development and Tourism, Michael Mabuyakhulu, has called on the people of the province to change their behaviour when it comes to financial and credit matters.
Speaking to SAnews, Mabuyakhulu said more and more people were sinking into debt and many were living beyond their limited means.
Mabuyakhulu was speaking at the launch of Savings Month in the province. He said according to latest statistics, the population of KwaZulu-Natal and the country had slid further into the debt trap.
“In KZN, there has been an increase of the total credit granted from R12 480 759 362 at the end of the first quarter of 2012, to R13 921 937 023 at the end of the last quarter of 2012. This is the trend across all provinces. This implies that people are not saving enough but resort to credit to sustain their lifestyles,” he said.
Figures released by the National Credit Regulator (NCR) on credit distribution in South Africa places the province of KwaZulu-Natal in third position as the province with the highest amount of credit granted in the fourth quarter of 2012.
Gauteng tops the list with the highest credit granted and is followed by the Western Cape in second position.
A national total of R119 940 724 075 in credit was granted in the fourth quarter of 2012.
“The problem we have in the country is that instead of saving, consumers are living beyond their means. Most debts are on credit cards, bank overdraft and store cards. This increases consumer debt and hence makes it impossible to have any savings,” the MEC said.
He insisted that for the country to be able to hold its own in the family of other nations, the culture of indebtedness needed to change.
“Saving is not only good for individual consumers, but it has a positive effect in the economy of the country. If we develop a culture of saving, we won’t solely rely on foreign direct investment for our economic prosperity, but we can pool together whatever little resources we have,” he said.
The MEC also said the public must desist from seeking assistance from unregistered credit lenders and loan sharks, but rather seek assistance from recognised institutions.
The month of July is regarded as Savings Month in South Africa. As a result, all consumer education and awareness campaigns across the Republic will be on savings.
The KZN Department of Economic Development and Tourism has adopted the theme ‘Think, Shrink and Grow’ for this year’s campaign. – SAnews.gov.za
