* Banks pushing unsecured personal loans
* Household debt at 75 percent of disposable income
* Nearly half of borrowers are in arrears
By Helen Nyambura-Mwaura
JOHANNESBURG, March 21 (Reuters) – For years South Africa’s
banks never realised they could make money out of millions of
low-paid workers, but now they can’t stop – just ask Salma.
After losing her husband and then her business, the
39-year-old mother of one is overwhelmed by a mortgage, car
finance, six unsecured loans and debt on her four credit cards.
That totals 120,000 rand ($15,800), equal to 10-1/2 months
of the salary she earned before her business as a dance
instructor all but collapsed.
“If I knew what was coming, I wouldn’t have spent so much on
my cards, no chance,” said Salma, who asked that she be
identified only by her first name.
“It is emotionally disabling. I stress so much that I
actually get physically ill.”
Continued…
