Consumer indebtedness of public servants in South Africa: evidence from the Department of Health in the North West Province.
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Authors
Moaisi, Lesolobe
Ngwenya, Sam
Issue Date
2014
Type
Article
Language
en
Keywords
South Africa, Consumer Indebtedness, Public Servants
Alternative Title
Abstract
The primary objective of this study was to determine the consumer debt level of public servants in the Department of Health in the North West Province, South Africa. The results of the study indicate that most public servants rely almost entirely on the public service remuneration to survive and for debt repayment. The results of the survey also indicate that 96% of public servants in the Department of Health in the North West Province are over-indebted. The respondents also perceived their income to be insufficient and thus resort to credit to maintain their required standard of living. The results also indicate that 63% of the respondents have a debt-income ratio above 20%. The reason for falling into debt is mostly due to lack of funds and insufficient income. The most common types of consumer debt found among the respondents included store cards (26%), followed by personal debt from banks (18%), while vehicle loan debt (37%) consumed the highest rand value of total debt among respondents. Personal loans from banks (21%) comprised the second highest debt value incurred by the respondents. It could be argued therefore that most public servants are over-indebted and could be trapped in a debt cycle if no additional income is provided or if they do not embark on some kind of personal financial management education.
Description
Citation
Moaisi, L. and Ngwenya, S. 2014. Consumer indebtedness of public servants in South Africa: evidence from the Department of Health in the North West Province, Corporate Governance & Control, 11(4): 258-276.
Publisher
Virtus Interpress
License
Journal
Volume
Issue
PubMed ID
DOI
ISSN
1810-3056