Less Credit Active Consumers yet Debtors books keep growing

Able Tracers & Debt Collectors offers professional and efficient debt collection in Port Elizabeth. Additionally, we provide debt collection services throughout South Africa, including the Eastern Cape, Border and Western Cape.  We do not only do calls from our call centre,  but also have a strong outside debt collector base successfully servicing all regions.

Debt Collection for your business

In this article, we take a look at current statistics reflecting the overall debt situation of South Africa.

The National Credit Regulator released the latest Credit Bureau Monitor and Consumer Credit Market Reports for the most recent quarter ending on the 30th of June 2018.

Information provided to the National Credit Regulator’s office by the Credit Bureaus is used to compile the Credit Bureau Monitor and Consumer Credit Market Reports. These reports are compiled and distributed every quarter.

Reduction in credit active consumers

The Credit Bureaus have reflected a reduction 876 000 in the total number of credit active consumers quarter-on-quarter and up to 197 000 year-on-year.

Furthermore, there has been a notable decrease (751 000 quarter-on-quarter) in consumers who have accounts that are more than 3 months in arrears.

There has been a drastic increase of 21.8% year-on-year in total enquiries that have been made on the Credit Bureaus while the rejection rate of credit applications is standing on 50.06% for the latest quarter.

The National Credit Regulator issues the Consumer Credit Market Report. This report is based on the returns which Credit Providers are obliged to submit.

The amount of credit that has been issued to the country has increased by R131.65 billion for the latest quarter ending in June 2018. This is a total increase of 8.25% compared to the previous quarter and a yearly increase of 9.63%.

The recent hike in fuel price and other costs will have a further impact on these already alarming statistics. As a result, consumers will be faced with bigger challenges when it comes to managing their debt.

Quarterly Comparison

# 4th Quarter 2017 1st Quarter 2017 2nd Quarter 2018 Change in %
Credit active consumers 25.31 25.46 24.59 -4%
Consumers in good standing 15.62 15.77 15.20 -4%
Applications for credit 10.48 10.49 11.10 5%
Rejection of credit applications 49.74 48.53 50.06 3%
New credit granted 135 711 121 620 131 647 8%
Mortgages granted 41 331 35 395 40 175 12%
Secured credit granted 46 367 41 480 41 541 0%
Unsecured credit granted 25 065 23 226 26 001 11%
Credit facilities granted 17 509 16 721 18 618 10%
Short-term credit granted 3 726 3 219 3 579 10%
Developmental credit granted 1 713 1 579 1 733 9%
Total consumer balances outstanding 1 755 500 1 777 553 1 797765 1%

 

Annual Comparison

# 2nd Quarter 2016 2nd Quarter 2017 2nd Quarter 2018 Change in %
Credit Active Consumers 24.08 24.78 24.59 -1%
Consumers in good standing 14.41 15.10 15.20 1%
Applications for credit 43.11 39.53 41.94 6%
Rejection of credit applications 53.3% 51.5% 49.9% -3%
New credit granted 464 733 477 457 512 618 7%
Mortgages granted 148 612 145 019 154 439 6%
Secured credit granted 151 125 157 734 171 638 8%
Unsecured credit granted 82 604 85 832 96 585 11%
Credit facilities granted 56 880 59 147 68 980 14%
Short-term credit granted 14 696 12 629 13 593 7%
Developmental credit granted 11 414 17 095 7 383 -132%
Total consumer balances outstanding 1 663 291 1 716 124 1 797 765 5%

 

Debt Collection South Africa

Credit providing businesses are faced with the daunting possibility that their debtors may become unable to pay back their debts. This is where debt collection companies are able to step in and ensure that debt is effectively collected.

Able Tracers & Debt Collectors – Debt Collection South Africa

Hiring us for debt collection in Port Elizabeth will greatly minimise the financial impact on your business due to over-indebted consumers.

We strive to be one of the best debt collection agencies in South Africa by providing a professional, efficient collection service to private individuals and businesses alike.

Contact us for more information about our debt collection services and how we can assist your business.

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