SA private sector owes R2.5 trillion

South Africa’s private sector credit balances, comprising corporate and household credit, stood at nearly R2.5 trillion at the end of last month, according to  figures released by ABSA yesterday.

Household credit balances alone were at R1.3 trillion, the bulk of these being in mortgages which accounted for R1.1 trillion.

Household mortgage balances stood at R798.2 billion.

South African consumers are under pressure with most surviving on their credit cards to make ends meet.

Trans Union, a credit and information management company, said that credit health was deteriorating and could see more households missing on loan repayments.

Consumer spending patterns were also likely to be affected with people cutting back on non-essential purchases.