02/03/2019
Some of the reasons as to way people are OVER-INDEBTED
Change in financial circumstances due to unemployment. Certain credit agreements are approved based on a joint income eg: A Home loan. Unemployment of one of the parties would change the financial status of the consumers. Over dependency on overtime could land one in financial difficulty. If overtime is no longer available, the total income earned would be reduced and this could result in the consumer being over-indebted.
Reckless lending and reckless borrowing could very easily cause you to be over-indebted. Inflation, recent interest rates hikes and a weak economy are significant contributing factors to over-indebtedness in South Africa.
