While borrowers avoided another interest rate increase, consumers remain trapped by high debt repayments, soaring prices and stagnant incomes, according to Debt Rescue CEO Neil Roets.
South Africans received some much needed reprieve this past week, as the South African Reserve Bank's (Sarb) Monetary Policy Committee (MPC) voted to keep the repurchase rate (repo rate) unchanged on Thursday.
This means that the prime lending rate in the country will also remain at 10.50% which will bring temporary relief to indebted consumers, but financial experts have warned that households remain under immense pressure as inflation and the cost of living continue to erode disposable income.
The MPC opted to keep borrowing costs unchanged, a move welcomed by debt counselling firm Debt Rescue.
However, the organisation cautioned that the decision does little to address the financial hardship experienced by millions of South Africans.
