Consumer credit health improves for first time since 2011

MAY 7, 2015

South African consumers' credit health seems to be improving as TransUnion’s SA Consumer Credit Index (CCI) moved higher in the first quarter of 2015.

TransUnion says its proprietary consumer credit health measurement tool combines actual consumer borrowing and repayment behavior with publicly available macroeconomic variables.

The CCI for the first three months of 2015 stands at 54-point-3 - up from 50-point-6 recorded in the last three months of 2014. The CCI is based on a 100-point scale, with a number above 50 indicating improvement.

Millions of South Africans are battling with over-indebtedness - most owing money to up to six or seven creditors.

It's the best improvement since 2011, and follows 11 straight quarters of decline.

Still, TransUnion warns that load-shedding, labour disputes, a weak job market and an unstable Rand will continue to affect the credit health of consumers.