In 2022, the middle class left behind mountains of debt

2022 was the year the middle class got seriously indebted as rising fuel and food prices eroded their earnings and forced them to borrow more. They now spend 66% of their income on loan repayments. South African consumers were hit by two rate hikes in the third quarter, with the benchmark interest rate 3.25% higher than this time last year. That means people with a R1.5 million home loan had to come up with an additional R3,000 a month just to cover their installments. And that was before the last 75 basis point raise…

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