Vehicle instalments driving you to despair

According to the Experian Consumer Default Index (CDI) more and more South African households are under increasing financial strain.

The CDI tracks the financial behaviour of 14.2 million consumers with 17.9 million active credit cards, personal loans, vehicle finance and/or home loans with a value of approximately R1.57 trillion in outstanding debt.

According to their statistics the rate of first-time credit defaults has escalated significantly since January 2018.

A significant portion of this rise was caused by increasing defaults in the vehicle finance sector – which begs the question: “Is it worth driving a luxury car by day, but having the instalment haunt you at night?”

The hike in VAT as well as the constant petrol price increases are surely not helping the situation either, as it negatively impacts the disposable household income and cash flow of consumers.

According to David Coleman, chief data officer at Experian SA, the default in vehicle loans also has a direct impact on consumers who are taking on more credit in order to fund their everyday expenses.

In light of the above, it is abundantly clear that big “desire-purchases” such as buying a new car can have serious repercussions on your budget. Re-evaluate whether you need a vehicle or if you want a new vehicle. There is also a huge difference between “I truly need a new/my own vehicle” and “I am buying the newest/fastest/biggest vehicle on the market.”

Take the following steps when you have evaluated your situation and have come to the conclusion that you need a new vehicle:

  1. 1. Decide on a vehicle that addresses your needs and your budget;
  2. 2. Consider a second-hand vehicle;
  3. 3. Do not buy the most expensive car that you can afford – leave “wiggle-room” for interest hikes or further fuel price increases;
  4. 4. Hang on and accumulate a deposit to reduce your monthly repayments;
  5. 5. Don’t delay your problems by choosing a (large) balloon payment.

Don’t let vehicle payments drive you to despair. You can take preventative measures before buying a new car. Even if you are currently caught up in a difficult situation with your monthly car repayments, perhaps you could look for a more economical solution: one that won’t strain your pocket and would still be a sweet ride!


  • 10 common credit score myths.
  • 5 ways to pay your credit card debt.
  • 8 most common credit terms.
  • A Guide On How To Get Out Of Debt.
  • Blacklisting, is it still a thing?
  • Breaking Bad Debt.
  • Build Your Credit Score While You’re Young
  • Can I Get A Loan While Under Debt Review?
  • Can Your Credit Score Affect Your Job?
  • Check Your Credit Report For Signs Of Fraud
  • Common myths about debt review.
  • Debt Management Tips.
  • Debt Review Is A Good Idea.
  • Default, Judgement, Sequestration.
  • Disputing Errors on Credit Reports
  • Free VS Paid Credit Reports.
  • Frequently Asked Questions about Debt Review.
  • Get your credit report before applying for a loan.
  • Get Your Credit Score Back On Track
  • Good Debt Can Build Your Credit Score.
  • Hard VS Soft Inquiries On Your Credit Report.
  • Have I Been Blacklisted?
  • How do I get late payment entries removed?
  • How Do I Manage My Debt When I Am Unemployed?
  • How do I read my credit report?
  • How is your credit score calculated?
  • How Is Your Credit Score Weighted?
  • How Long Does Debt Review Last?
  • How To Calculate Your Debt-To-Income Ratio.
  • How To Clear Your Name At Credit Bureaus.
  • How To Improve Your Credit Score After Debt Review.
  • How To Qualify For New Credit With No Credit Score.
  • How To Reduce And Eliminate Debt.
  • Judgements, Administrations and Listings
  • Online Shopping – Just (don't) add to cart!
  • Teaching Children Good Money Sense.
  • The Best Way to Manage your Store Credit Card Account
  • The Pros And Cons Of Debt Counseling.
  • Things You Don't Want To See On Your Credit Report.
  • Tricks To Help You Save While Paying Off Debt
  • Understanding a credit report in South Africa.
  • Understanding Debt Consolidation Loans in South Africa
  • Vehicle instalments driving you to despair
  • Warning Signs You Could Be Heading for Financial Disaster
  • What Affects Your Credit Score?
  • What are credit bureaus and how do they work?
  • What causes credit card debt?
  • What do credit bureaus know about me?
  • What Effect Does Your Credit Report Have On Your Interest Rates?
  • What Happens To Your Credit When You Get Married?
  • What Happens When I Skip A Debt Payment?
  • What Happens When You're Debt Free?
  • What is a credit score?
  • What is a credit utilization rate?
  • What Is A Decent Credit Score To Buy A Car?
  • What Is A Good Credit Score If You Want To Buy A House?
  • What Is A Hard Inquiry And How Does It Affect Your Credit Report?
  • What Is A Soft Inquiry And How Does It Affect Your Credit Report?
  • What Is Considered A Bad Credit Score?
  • What is considered a good credit score?
  • What Is Debt Administration?
  • What Is Debt Counseling?
  • What Is Debt Review?
  • What’s the difference between your credit score and your credit report?
  • Which Type Of Credit Carries The Most Risk?
  • Why Debt Counseling Is Perfect For You.
  • Why Did My Credit Score Go Down?
  • Will checking my credit report affect my credit score?
  • Your Best Defence Against Identity Theft Is Your Credit Report
  • Your Credit Score: The Basics.
  • Show More

    Check for arrears accounts

    modal-close

    In order to help you on your way to Credit Health, we've teamed up with Transaction Capital Recoveries and MBD Inc. By selecting continue, you give consent that we may check for any arrear accounts on your behalf.

    Check for arrears accounts

    modal-close

    In order to help you on your way to Credit Health, we've teamed up with Transaction Capital Recoveries and MBD Inc. By selecting continue, you give consent that we may check for any arrear accounts on your behalf.

    modal-close

    Report Download

    modal-close

    Funeral Cover Application

    modal-close

    You will be redirected shortly to complete the signup process

    If you are not redirected, click here.