Household debt is “worrying”

JOHANNESBURG – South Africa’s households continue to finance spending through credit, pushing debt levels to “worrying” levels, central bank Governor Tito Mboweni said on Friday.

“It is very clear to me that households continue to finance their current expenditure through debt. The fact that household debt as a percentage of disposable income continues to climb should be a matter of concern.It is worrying,” he told parliament’s finance committee.The South African Reserve Bank said on Thursday household debt jumped to a record 69,75 per cent of disposable income in the second quarter of 2006.Nampa-ReutersThe fact that household debt as a percentage of disposable income continues to climb should be a matter of concern.It is worrying,” he told parliament’s finance committee.The South African Reserve Bank said on Thursday household debt jumped to a record 69,75 per cent of disposable income in the second quarter of 2006.Nampa-Reuters