DEBT DEFAULTS RISE AMONG THE AFFLUENT

Data released by Experian South Africa’s Consumer Default Index (CDI) shows that affluent consumers experienced a significant increase in loan defaults, while younger consumers were honouring their debt commitments. The most affluent consumer group, the Luxury Living segment, makes up 2.5% of the population yet accounted for 35% of total credit exposure in the fourth quarter 2021. This group’s default rate increased year on year from 2.30 to 2.47, resulting in a 7% deterioration in the CDI. This contrasts strongly with the relative improvements observed in all five other groups.