Economist, Debt Counsellors Calling for Rate Cut

The information in this article is courtesy of iAfrica (Cut Interest Rates Now! – 11 March 2009)

Andre Snyman, CEO of Consumer Assist told iAfrica that growing debt is rapidly putting an increasing strain on consumers, banks, retailers and other financial institutions. He emphasized that interest rates must be cut by 2%.

Snyman is not alone in his plea, with economists and debt counselor around the country calling for a 200 basis point cut.

Snyman added that many consumers need just a little leeway for them to manage and an interest rate cut could avoid cash-strapped consumers losing their homes and cars.

According to Snyman heavily indebted people are coming from all walks of life and simply can’t cope anymore. These people are not paying school fees, which in turn causes difficulty with the financing of schools. It also causes health problems and depression.

Snyman said that should interest rates remain the same, South Africa will have to face the knock-on effects of seriously indebted people including fraud, corruption, low productivity, poor health, marital problems etc.

Buy property in Randburg