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 30^th 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.