SOUTH Africans’ nerves are not spared from the global credit crunch as more consumers suffer from stress and addictive behaviour resulting from over-indebtedness.

Debt counsellors and social workers say the trend also negatively affects people’s work performance.

Their comments follow reports suggesting that South Africans were trapped in their worst debt crisis yet, with household debt quadrupling to R1.1trillion over the past five years.

Fidelity Debt national director Johan Juselius said mounting debt resulted in altered behaviour and low productivity in the work place.

“It’s extremely traumatic for the individual and affects productivity in the workplace for the company. It leads to a dramatic increase in absenteeism.

“Social behaviour for the individual changes, family life suffers and people turn to alcohol,” said Juselius.

Interest rates as well as food and fuel price increases are blamed for mounting consumer debt over the last two years.

According to chief executive of Consumer Assist Andre Snyman, a poor saving culture has put people in a position where they have virtually nothing put aside for rainy days.

“The main cause is not having a proper budget that anticipates what can change. Before the National Credit Act was implemented in June last year, people had three to four credit cards and bond house payments thanks to reckless lenders.”

Snyman said his company’s debt counselling services had seen applications increase from 10 to 200 a day since their introduction last year.

“The interest rate increases have affected people tremendously: Someone with a R700000 bond now pays R2230 more than they did in 2006,” said Snyman.

Juselius and Snyman advise customers not to bury their heads in the sand, but rather tackle the problem as soon as they are in the red.

Lifeline Port Elizabeth director Susan Potgieter said 90 percent of people who sought their help had problems stemming from over-indebtedness.

“Debt can definitely increase stress. At least 90 percent of the calls we get this year are from people who seek advice about financial problems.”

Clinical psychologist Sandi Raath said high levels of indebtedness prolonged over a long period often lead to anxiety and depression.

“There have been quite a lot of patients coming for debt-related problems … Debt can lead to depression and display such symptoms as insomnia and lack of appetite.

“People (in the situation) feel out of control and hopeless. They sometimes turn to alcohol and substance abuse as a means of coping. Abuse of prescription medication is not uncommon and this leads to a second diagnosis,” said Raath.

Development economist Mohau Pheko warned that consumers should not take on any more debt, as the current financial market faced uncertainty.

See Opinion. - By SIYA MITI

Business Reporter