Reporter Ethel Hazelhurst of Business Report writes:
“While defaults on credit card loans are threatening another crisis abroad, the worst may be over in South Africa.

In the US, analysts expected a rise in credit card losses and warned that they might prolong the credit drought.

However, Graeme Holmes, head of Nedbank card division, reported an improvement in bad debt levels relating to credit cards over the past six months on Thursday, as “most of the candidates for bad debts are out of the system”.

In addition, borrowers were taking remedial action, according to Holmes. “We are seeing card holders more aggressively paying off their higher interest, unsecured debt first.”

Peter Schlebusch, the chief executive of Standard Bank’s personal and business banking, reported an improvement in bad debt related to credit cards.”

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