South Africa: The Vicious Cycle of the Debt Trap Fallen Into By Social Grant Recipients

analysis

Social grantees have become a lucrative credit market, but borrowers enjoy little protection from unscrupulous lenders. It raises questions about legislative loopholes and problems with the social grant system itself.

The Christmas countdown is upon us with the now-usual temptation to overspend in the name of "goodwill and cheer". It's a debt trap for many and for social grant recipients who have to lend to spend, it's outright exploitation.

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