The national credit act and macroeconomic variables in the context of over-indebtedness in South Africa

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DOI:

https://doi.org/10.20525/ijrbs.v13i6.3437

Keywords:

National Credit Act, macroeconomic variables, over-indebtedness, South Africa, , tablets

Abstract

This article reports on a study aimed at measuring and characterising consumer over-indebtedness in South Africa, despite the existence of financial regulatory measures and legislation. The study employed quantitative analysis to examine the impact of macroeconomic variables on consumer over-indebtedness. The primary conclusion of the study indicated that the debt-to-disposable-income ratio decreased following the enactment of the National Credit Act; nevertheless, the alterations in debt levels cannot be solely ascribed to the enforcement of regulations and legislation. The study findings indicate that over-indebtedness correlates positively with gross domestic product, consumer expenditure, unemployment, and the debt-to-income ratio, while exhibiting a negative correlation with the interest rate.

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Published

2024-10-14

How to Cite

Keyser, N., Duvenhage, C., & Abdulla , M. (2024). The national credit act and macroeconomic variables in the context of over-indebtedness in South Africa. International Journal of Research in Business and Social Science (2147- 4478), 13(6), 182–188. https://doi.org/10.20525/ijrbs.v13i6.3437

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Section

Financial and Economic Studies