79% of South African Consumers Say Household Income Negatively Impacted by COVID-19

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TransUnion research findings on the impact of COVID-19 on South African consumers;

·Eight in 10 (79%) said their household income has been negatively impacted by the COVID-19 pandemic.

·An additional 7% of South African adults said they expect that their household income will suffer in the future.

·46% report that they will not be able to pay their utilities (electricity, water, etc.),

o42% will not be able to make their rent repayment,

o39% report that they will not be able to pay their cell phone bill, and

on average, respondents said they will be short about R7,000 soon.

·Approximately (32%) of those impacted said their work hours were reduced and one in ten (10%) lost their job.

·89% of consumers who have had their household income impacted by COVID-19 are concerned about paying their bills. The strain is even more pronounced for Millennials (92%) and Gen X (95%).

·One in ten (10%) of impacted respondents have already lost their job as a result of the COVID-19 pandemic;

o12% for the Western Cape,

o11% for the North West,

o10% for Kwa-Zulu Natal, and

o10% for Gauteng.

· In response to the financial challenges caused by COVID-19,

o29% of South African consumers said they planned to use their savings to pay current bills,

o22% said they would borrow money from a friend or family member,

o27% do not know how they are going to pay their bills or loans, and

o33% will only pay a partial amount that they can afford.

·Two in five (40%) people financially impacted by the pandemic said they had already reached out to companies they have accounts with to discuss payment options.
20 Apr 2020 7AM English South Africa Business News · Investing

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