Educate Consumers On Responsible Spending

24 October 2006

Chair, even though our economic growth is driven by household consumption, it is rather a cause for concern that domestic consumers finance their consumption through debt. This has resulted in consumers being trapped in unsustainable debt, which has put pressure on our inflation rate.

The recent interest rate hikes are an attempt by the Reserve Bank to curb inflation resulting from reckless borrowing and expenditure. We urge the financial services sector to educate consumers on personal debt management and responsible spending.

The ANC urges all South Africans to limit their appetite for debt and try to live within their means. If the household debt doesn`t decline, we are bound to have another interest rate hike very soon. Thank you.

ANC Member of Parliament

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