79% of South African Consumers Say Household Income Negatively Impacted by COVID-19

TransUnion research findings on the impact of COVID-19 on South African consumers;

·Eight in 10 (79%) said their household income has been negatively impacted by the COVID-19 pandemic.

·An additional 7% of South African adults said they expect that their household income will suffer in the future.

·46% report that they will not be able to pay their utilities (electricity, water, etc.),

o42% will not be able to make their rent repayment,

o39% report that they will not be able to pay their cell phone bill, and

on average, respondents said they will be short about R7,000 soon.

·Approximately (32%) of those impacted said their work hours were reduced and one in ten (10%) lost their job.

·89% of consumers who have had their household income impacted by COVID-19 are concerned about paying their bills. The strain is even more pronounced for Millennials (92%) and Gen X (95%).

·One in ten (10%) of impacted respondents have already lost their job as a result of the COVID-19 pandemic;

o12% for the Western Cape,

o11% for the North West,

o10% for Kwa-Zulu Natal, and

o10% for Gauteng.

· In response to the financial challenges caused by COVID-19,

o29% of South African consumers said they planned to use their savings to pay current bills,

o22% said they would borrow money from a friend or family member,

o27% do not know how they are going to pay their bills or loans, and

o33% will only pay a partial amount that they can afford.

·Two in five (40%) people financially impacted by the pandemic said they had already reached out to companies they have accounts with to discuss payment options.