What matters more for South African households’ debt repayment difficulties?
| dc.contributor.author | Ssebagala, Ralph | |
| dc.date.accessioned | 2016-08-30T07:04:48Z | |
| dc.date.available | 2016-08-30T07:04:48Z | |
| dc.date.issued | 2016-01 | |
| dc.description.abstract | While the increased access to consumer credit has helped many families improve their welfare, the rising repayment burdens upon a background of chronically law savings rate have generated concerns that South African families are becoming ever more financially fragile and less able to meet their consumer debt repayment obligations. Using data from the Cape Area Panel Study (CAPS), this paper investigates whether consumer debt repayment problems are better explained by excessive spending which leaves households financial overstretched or by negative income shocks. The results indicate that households are significantly more likely to be delinquent on their financial obligations when they suffer negative events beyond their control rather than due to the size of the expenditure burden. This suggests that some consumers will experience repayment problems even when they borrow within their means. Thus regulatory efforts to improve mechanisms for debt relief might be more meaningful than restrictions on lending. | en_ZA |
| dc.identifier.apacitation | Ssebagala, R. (2016). <i>What matters more for South African households’ debt repayment difficulties?</i> University of Cape Town ,Faculty of Humanities ,Social Survey Unit. Retrieved from http://hdl.handle.net/11427/21599 | en_ZA |
| dc.identifier.chicagocitation | Ssebagala, Ralph <i>What matters more for South African households’ debt repayment difficulties?.</i> University of Cape Town ,Faculty of Humanities ,Social Survey Unit, 2016. http://hdl.handle.net/11427/21599 | en_ZA |
| dc.identifier.citation | Ssebagala, R. (2015). What matters more for South African households’ debt repayment difficulties? CSSR Working Paper No. 367. Centre for Social Science Research, University of Cape Town. | en_ZA |
| dc.identifier.isbn | 978-1-77011-355-8 | en_ZA |
| dc.identifier.ris | TY - Working Paper AU - Ssebagala, Ralph AB - While the increased access to consumer credit has helped many families improve their welfare, the rising repayment burdens upon a background of chronically law savings rate have generated concerns that South African families are becoming ever more financially fragile and less able to meet their consumer debt repayment obligations. Using data from the Cape Area Panel Study (CAPS), this paper investigates whether consumer debt repayment problems are better explained by excessive spending which leaves households financial overstretched or by negative income shocks. The results indicate that households are significantly more likely to be delinquent on their financial obligations when they suffer negative events beyond their control rather than due to the size of the expenditure burden. This suggests that some consumers will experience repayment problems even when they borrow within their means. Thus regulatory efforts to improve mechanisms for debt relief might be more meaningful than restrictions on lending. DA - 2016-01 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2016 SM - 978-1-77011-355-8 T1 - What matters more for South African households’ debt repayment difficulties? TI - What matters more for South African households’ debt repayment difficulties? UR - http://hdl.handle.net/11427/21599 ER - | en_ZA |
| dc.identifier.uri | http://hdl.handle.net/11427/21599 | |
| dc.identifier.vancouvercitation | Ssebagala R. What matters more for South African households’ debt repayment difficulties?. 2016 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/21599 | en_ZA |
| dc.language | eng | en_ZA |
| dc.publisher.department | Social Survey Unit | en_ZA |
| dc.publisher.faculty | Faculty of Humanities | en_ZA |
| dc.publisher.institution | University of Cape Town | |
| dc.rights | Creative Commons Attribution 4.0 International (CC BY 4.0) | * |
| dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | en_ZA |
| dc.title | What matters more for South African households’ debt repayment difficulties? | en_ZA |
| dc.type | Working Paper | en_ZA |
| uct.type.filetype | Text | |
| uct.type.filetype | Image | |
| uct.type.publication | Research | en_ZA |
| uct.type.resource | Working paper | en_ZA |