South Africans borrow easily but do not like to pay it back - Study

Eighty six percent of consumers believe their lives would be better if they had less debt‚ yet only 24% would sell most things they own to get rid of debt.

This is according to the latest Havas Prosumer Report entitled “Money‚ Money‚ Money: Attitudes Towards Credit‚ Consumption and Cryptocurrency”.

Some highlights from the report include:

- 80% of consumers surveyed believe that their lives would better if they had more money; and the same measure would work more to earn more. Yet only 4 in 10 say that money gives meaning to their lives and 84% of the same group believes people obsessed with money are missing out on the true meaning of life.

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- 80% of those surveyed will get into debt to buy a home while over 43% will borrow money for a vehicle and 11% for furniture. These figures are higher than both BRICS and global averages. Just over half of the parents surveyed will get into debt for their children’s education while 42% of adults will get into debt for their own tertiary education.

- Keep It Simple‚ Banks! South Africans expect financial institutions to adapt to new technologies with 68% of "Prosumers" wanting to pay for everything with their smartphones. "This is not too far off from where the rest of the mainstream consumers are‚ meaning the central role smartphones play in facilitating transactions will be around for some time. "There’s an anticipation for the use of wearables and biometrics to carry out and validate everyday transactions. This skew towards tech-savvy processes aligns with the preference for simplicity as seen in the 63% of South Africans who prefer that their financial life

- banking‚ mortgage‚ investment‚ insurance - to be bundled into a single organisation." Speaking on the findings‚ Chief Strategy Officer at Havas Johannesburg‚ Lou Boxall-Davies‚ said a number of tensions define SA consumers' relationship with money and its place in their lives.

"Many feel that the next generation will be less financially secure‚ while a number worry about losing their existing investments. They are interested in financial literacy and they believe that it will put them at ease in this uncertain climate. They want to know how to better define the role of money in their lives‚ to handle debt better‚ to demand better offerings from financial service providers‚ to invest better and build wealth‚ and to witness a more financially just world."

The report draws on findings from a survey of 11‚976 people aged 18+ in 37 markets. The survey was created by Havas Worldwide and fielded by Market Probe International.