Thesis (MBA (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The National Credit Act came into being on the 1st of June 2007 and besides its other objectives
was intended to make credit more accessible to all South Africans, to stop unreasonable practices
by lenders and to protect consumers against reckless lending. This research study investigates the
credit environment for the period since the implementation of the Act up to the fourth quarter of
2009 to determine whether South African credit users are indeed better off or whether we are
heading for a credit crisis.
A literature review was conducted to investigate the extension of credit to households during the
period under review and to investigate consumers’ ability and willingness to repay their debt. Due
to the global and local financial crisis that happened during this period and the losses and wealth
destruction that ensued, the research was extended to consider the influence of the
macroeconomic situation on the debtors’ ability to honour their debt commitments.
To determine whether South African households are heading for a credit crisis the researcher
reviewed literature relating to the financial vulnerability of households, the application of their
monthly disposable income, the main reasons for entering into credit agreements, and lastly the
extent of over indebtedness.
The findings indicate that credit has indeed become more accessible to all South Africans as the
number of credit active consumers continued to increase from quarter to quarter. With regards to
the cost of credit and the minimum qualifying criteria, credit also became more accessible as
individuals earning as little as R1 500 per month became eligible for credit and store cards that
used to be exclusive to higher income earners. During the period under review the standing of
credit active consumers continued to deteriorate with only 54% of credit active users classified as
current at the end of the period, almost 10% lower than before the implementation of the act.
It was also found that macroeconomic influences from around the world had a real influence on the
ability of credit active consumers to honour their financial commitments. Increased interest rates,
inflation, higher transport and energy costs, unemployment and many other factors influenced the
income available for and the ability to repay debt over the period under review.
Lastly it was found that households are increasingly vulnerable to any changes in their income,
expenses, savings or debt position. It is increasing to such an extent that more than 50% of all
credit active consumers surveyed during a previous study admitted to borrowing in order to re-pay
debt and that a relatively large percentage of users are committed to debt repayments for more
than 100% of their monthly income. These findings support the opinion that a credit crisis is on the
loom in the South African credit industry.
Due to the relatively short period covered by the research stretches and the multitude of income
groups and credit agreements included, more research is needed to make specific
recommendations to improve the position of credit active consumers. The challenges facing the
industry are further complicated by the need credit and other needs of the lower income earners,
the required price-for-risk-policies of credit providers and the low levels of financial education
amongst users. All three these themes require more research. / AFRIKAANSE OPSOMMING:
Die Nasionale Kredietwet wat op 1 Junie 2007 in werking getree het het onder meer ten doel
gehad om krediet meer toeganklik te maak vir alle Suid Afrikaners, om onbillike praktyke deur
krediegewers stop te sit en om gebruikers te beskerm teen roekelose kredietverlening. Hierdie
navorsing verken die kredietomgewing vir die tydperk sedert inwerkingtreding van die wet tot en
met vierde kwartaal van 2009 ten einde vas te stel of Suid Afrikaanse gebruikers inderdaad beter
daaraan toe is, en of ons afstuur op n krediet krisis.
‘n Literatuurstudie is onderneem om die toestaan van die verskillende tipes huishoudelike krediet
tydens hierdie termyn te ondersoek, sowel as die gebruikers daarvan se gewilligheid en vermoë
om hul maandelikse skuldverpligtinge na te kom. Vanwee die ernstige finansiële krisis wat tydens
hierdie periode in die wêreld en in Suid Afrika grootskaalse verliese en welvaartsvernietiging tot
gevolg gehad het, is die literatuurstudie uitgebrei om ook oorweging te gee aan die invloed van
hierdie gebeure op skuldenaars se vermoë om hul skuldverpligtinge te diens.
Ten einde vas te stel of Suid Afrikaanse huishoudings afstuur op ‘n kredietkrisis het die navorser
literatuur bestudeer rakende die finansiële kwesbaarheid al dan nie van huishoudings, die
aanwending van hul beskikbare inkomste, die redes vir huishoudings om geld te leen en laastens
die omvang van gebruikers wat meer veskuldig is as wat hulle kan bekostig.
Die bevindinge dui daarop dat krediet weliswaar meer toeganklik is vir alle Suid Afrikaners
aangesien die aantal krediet gebruikers gedurende die tydperk van kwartaal tot kwartaal gegroei
het. Wat betref die koste daarvan en die minimum vereistes daarvoor het krediet ook meer
toeganklik geword, en kwalifiseer individue wat so min as R1 500 per maand verdien nou vir
kreditkaarte en winkel krediet wat voorheen net beskore was vir die hoër inkomste groepe. Tydens
hierdie periode het die status van kredietgebruikers verder verswak en het die persentasie
kredietgebruikers wat op datum is met hul verpligtinge so laag as 54% gedaal; bykans 10% minder
as voor die inwerkingtreding van die wet.
Daar is verder bevind dat makro ekonomiese toestande in die res van die wêreld en Suid Afrika ‘n
daadwerklike invloed het op die vermoë van kredietgebruikers om hul skuldverpligtinge na te kom.
Stygende rentekoerse, inflasie, duurder vervoer en energiekoste, werkloosheid en vele ander
faktore het die kontant beskikbaar vir en die vermoë om skuld te delg baie nadelig geraak oor
heirdie tydperk.
Laastens is bevind dat huishoudings toenemend kwesbaar is vir enige veranderinge in hul
inkomste, uitgawe, spaar of skuld verpligtinge. Soveel-so dat meer as 50% van alle gebruikers van
krediet erken dat hulle by tye geld geleen het om ander skuld te betaal, en dat ‘n beduidelnde
persentasie gebruikers tot meer as 100% van hul besteebare inkomste verbind is vir maandelikse
terugbetalings. Bogenoemde bevindinge ondersteun die opinie dat daar n dreigende krisis in die
Suid Afrikaanse kredietomgewing is.
Aangesien hierdie navorsing beperk is tot ‘n relatiewe kort termyn en dit ‘n groot spektum van
inkomstegroepe en kredietooreenkomste dek, is verdere navorsing nodig om spesifieke
aanbevelings te maak ten einde Suid Afrikaanse kredietgebruikers in ‘n beter posisie te plaas. Die
uitdagings in die industrie word verder gekompliseer deur die krediet en ander behoeftes van laer
inkomstegroepe, die noodsaaklikheid vir uitleners om hul produkte te prys vir die inherente risikos
wat daaraan gebonde is en die lae vlak van finansiële opleiding onder gebruikers. Al drie hierdie
temas benodig verdere navorsing.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/6401 |
| Date | 12 1900 |
| Creators | Luttig, Helmuth Hartwig |
| Contributors | Smith, Johan, University of Stellenbosch. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | University of Stellenbosch |
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