Single moms at risk
ACCORDING to an analysis done by National Debt Advisors (NDA) research department during the peak of the Covid-19 pandemic from March to December 2020, 80% of South African households spent their hard-earned income on paying off their debt. In light of Mother’s Day on Sunday, May 9, we ask: How are single-income households, especially those with female breadwinners, coping with the financial implications of the pandemic?
A recent analysis of our client base showed that, although 80% of women budget their income, 70% of them simply run out of money before month end. This leads them to seek out unsecured debt, and most likely approach unregistered money lenders in the township areas (also known as mashonisas)”.
The most distressed by the pandemic, single mothers are more prone to debt cycles
The 2021 PwC Women in Work Index indicates that as a result of the pandemic, progress for women in the workplace could be back to 2017 levels by the end of this year.
The research also showed that not only were women’s salaries the most affected, but many had to take on additional domestic responsibilities, resulting in leaving the workforce. South Africa’s latest employment figures echo this, with vulnerable black women being the most negatively affected in terms of jobs and income.
With everyday expenses increasing, single-income mothers are at higher risk of taking on more debt to finance these expenses.
About 65% of women among the NDA’s client base reported a reduced income during the lockdown. Their spending focus had to shift primarily to food and necessities, as opposed to pre-pandemic, with 50% of their income going towards servicing debt.
You have options – and they’re more accessible than you think
Sadly, many single mothers are unaware of the debt assistance that they have access to. As an example, when receiving a demand for payment from a creditor, one has access to a debt counsellor to allow for debt review. This also keeps you safe from asset repossession.
You don’t have to deal with harassment from your creditors. If you are struggling to make ends meet, get in touch with a National Credit Regulator (NCR) registered debt counsellor. They will advise you and handle all correspondence.
Help each other in small ways to make a big impact
As part of a community, we have a responsibility to help others in similar situations.
♦ Offer to fetch the children of a single mother from crèche or aftercare so she doesn’t have to pay late penalty fees if she is working late. ♦ If you are cooking for yourself and you have food spare, send some over to the single mom who works late.
♦ If you are walking your child to school, offer to do the same for her child – the peace of mind this will give her is priceless.
♦ Don’t wait for her to reach out – she is already struggling and might not know how to ask for help.
♦ Don’t judge her – offer help freely and unconditionally.