It has to come one day - an interest rate increase.
Fin24 raises the issue of debt levels and our ability to deal with it in an article today. The bit that got me was this:And that got me thinking - how ready are we for this day.The household debt-to-income ratio of South Africa rose from 49.1% in the final quarter of 2002 to 65.5% in the corresponding quarter of 2005.
There is no doubt that a lot of people are leveraged to the hilt, and will get seriously hit by even a small move. And probably the folks that will get hurt the most are businesses with unsecured debtors - mainly small business.
So are you ready for the day or do you think it'll never come?