The impact of debt on father figures

In most families, the role of a father figure is to provide, protect, and ensure that the financial well-being of the family is managed. With the current financial pressures and rising cost of living, most families will find themselves under immense financial pressure.

According to National Debt Advisors, more than 60% of their clientele are men between the ages of 29 and 48.

Great financial pressure is put on the father figure to support the family unit, and often the problem is trying to hide the burden from their spouse. Unfortunately, credit is often used when needed, but can very quickly turn into over-indebtedness, and this remains a huge challenge in our country.

The latest Credit Stress Report 2022 Q1 revealed that around half of all credit-active South Africans are financially stressed. The report is compiled by market research consultancy Eighty20 in conjunction with credit bureau XDS.

Using a client profiling tool, the report finds that younger, low-income men with little credit and high unemployment have the highest levels of credit stress in the nation. It also shows that middle-class workers, with average income, active credit with families, cars and mortgages are the second most stressed.

Pre-pandemic mortgages and auto loan debt combined with job losses created a spike in high levels of credit stress. Economic conditions in the country have had a significant impact on South Africans’ credit needs and ability to repay debt. On top of that, avoiding or hiding debt is never a viable solution, as repayments and the effects of compound interest can lead to rapid debt growth and partners can be liable for debts incurred by their other half, even if they weren’t aware of it. the debt.

Joint applications to the NDA – that is, when both spouses apply for debt relief – reveal that 76% of this group are male as primary applicants.

Unfortunately, many fathers are unaware of the financial assistance available to them. In times of financial difficulty, one has access to a debt counselor to allow the examination of the debt. If you’re struggling to make ends meet, contact a reputable, registered debt counselor for advice on a debt-free future.

It’s normal for the father figure to want to manage the household financially, but in times of financial hardship, it’s important to know that help is at hand.

Sébastien Alexanderson is founder and debt advisor at National Debt Advisors.