South Africa’s (SA) consumer confidence has dropped sharply among middle-income households, reflecting worries about household finances and economic outlook.

Experts say many consumers are heavily indebted, with a large proportion of their income going toward debt repayment, which leaves less for discretionary spending and investment.

As the National Treasury prepares to table its medium-term budget policy statement, government faces the challenge of balancing tax revenue, economic growth, and social support.

Debt busters say its latest debt index shows that consumers are under significant financial pressure.

This data is derived from its debt review applicants which looks at the percentage of take-home pay they are expected to use to pay debt.

–SABC–