White people dominate those under debt counselling, with those aged 31 to 40 across all race groups most indebted, a major research study released on Thursday shows.

Debt counselling has seen a bonanza of repayments to creditors with R40-billion paid back in February, rising to R97-billion in August and R107-billion in September, according to Andre Snyman, CEO of Consumer Assist, the largest debt counselling company in South Africa. Figures for repayments to creditors are based on information from debt counsellors, the National Credit Regulator and payment distribution agents.

Snyman delivered the findings at the Safari conference into debt management at Fourways in Sandton. The research which canvassed more than 10 000 consumers nationwide by Consumer Assist and associated debt counsellors showed that men were most likely to come forward for help with 58.12 percent of debt counselling applicants being male and 41.88 percent women.

Whites more likely to seek help

White people are more likely to seek help to overcome debt problems while, according to Snyman, black consumers would often shy away from debt counselling when they discovered they could not incur more debt until their debts were paid. "This is a matter of education," Snyman told delegates. "There needs to be a stronger focus on money management, budgeting and overcoming debt in all communities. Ideally, it should start in schools and be reinforced by financial wellness programmes in the workplace."

He said only a very small number of Asian individuals came for debt counselling, "Because most often they have strong family bonds and community structures that will assist them to get out of debt."

Statistics show the debt breakdown among South Africans to be:

  • Men 58.12 percent

    • White 44.13 percent

    • Black 28.93 percent

    • Coloured 22.11 percent

    • Asian 4.83 percent

  • Women 41.88 percent

    • White 40.75 percent

    • Black 29.55 percent

    • Coloured 25.73 percent

    • Asian 3.97 percent
People aged 17 to 20 and 71 and older reflect the smallest amount of those in debt with marginal numbers under debt review, the oldest person under debt review with Consumer Assist is 81-years-old.

Article continues on page two...

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