The SA Reserve Bank’s Quarterly Bulletin for the fourth quarter of 2022 states that consumers spend 62.3% of their net disposable household income on service debt. This figure is very worrying. It clearly indicates consumers find themselves in a debt trap, causing stress, and anxiety, eroding productivity and limiting consumers' ability to achieve their financial goals.
The debt trap occurs when consumers accumulate excessive debt, especially unsecured personal loans, and then struggle to make
