{"id":66921,"date":"2022-05-23T13:15:44","date_gmt":"2022-05-23T11:15:44","guid":{"rendered":"https:\/\/radioislam.org.za\/a\/?p=66921"},"modified":"2022-05-23T13:15:44","modified_gmt":"2022-05-23T11:15:44","slug":"most-middle-class-income-households-broke-by-fifth-of-the-month","status":"publish","type":"post","link":"https:\/\/radioislam.org.za\/a\/most-middle-class-income-households-broke-by-fifth-of-the-month\/","title":{"rendered":"Most Middle Class Income Households Broke by Fifth of The Month"},"content":{"rendered":"

By Umamah Bakharia\u00a0<\/em><\/p>\n

South Africa’s average middle-income earners spend up to 80% of their salary within five days of payday, this is according to data from First National Bank (FNB).<\/p>\n

This means that most South Africans survive on 20% of their monthly income for more than 20 days of the month.<\/p>\n

FNB defines these middle-income consumers as people who earn between R15 000 to R40 000 each month.<\/p>\n

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In an interview with Radio Islam<\/strong><\/em>, deputy editor at Business Insider South Africa, Phillip de Wet says insurance, loans, medical aid etc. take up most of the middle-class households’ salaries.<\/p>\n

“When you look at this kind of middle-income group, they are kind people that drive the economy through purchasing. These are the demand drivers for a lot of very important products and services,” says de Wet.<\/p>\n

Last week, the repo rate increased to increased by 50 points to 4.75% which has placed a burden on the consumer.<\/p>\n

“[The middle class] have been squeezing in everyday expenditure in terms of their debt load which is quite high and they don’t just have that disposable income anymore,” says de Wet.<\/p>\n

Economist believe that interest rates will increase as well as food, energy, fuel etc.<\/p>\n