Nearly half SA’s middle class is in ‘junk’ status

If your credit rating were measured with the same yardstick that credit ratings agencies use to analyse a country’s financial health, would your rating be “junk”?

In simple terms, if you cannot meet your financial obligations every month, your financial status might well be “junk”.

According to Businessdictionary. com, a credit rating means: “A grading of a country’s ability to meet its financial obligations. Credit-rating agencies provide these ratings, and investors use them to assess the level of risk related to investing in a country.”

According to the 2017 Sanlam Benchmark Survey, some findings of which were released this week, nearly half of the country’s middle class is in junk status.

The results of the survey were based on a sample of 1 317 individuals, 60% of whom earn more than R300 000 a year.