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Are South Africans in general irresponsible in times of economic uncertainty and difficulty?

I was browsing through an article this morning that detailed how many South Africans, when responding to difficult economic circumstances such as the current high interest rate climate, rising food costs and exorbitant petrol prices, usually follow the pattern of responding to such economic hardship by first, cancelling short term insurance policies such as vehicle and household cover and then followed by the further cancellation of long term insurance such as life cover and retirement annuities..... Is this not irresponsible behaviour, why not rather cut back on travelling costs, luxury items such as clothing and take away foods? I for one know of many South Africans who continue to unnecessarily waste at clothing stores (on credit), who go on holiday every long weekend and continue to frequent restaurants and take away outlets yet have cancelled insurance policies to fund their lifestyles and are in arrears on school fees and accounts? Do you have any opinions on this issue?

Public Comments

1. Bull....what a question!!!....I thought that I was the only one appalled by that behaviour, there are many South Africans who are stuck in this "shortimism" htinking.....like you said, most of them do that to bankroll their expensive lifestyle.....Others even cancell their medical aid, claiming that they are not getting sick......and have you seen "murphy's law" in action....most of those who cancell their car insurances get involved in accidents soon thereafter...... My opinion on this behaviour is that it is not wise and shows lack of foresight....it would be better for people to take off non-essential things like expensive clothing........and it's a fact that home cooking saves money....
2. I wish i could say i am the same but i live on cash only i have credit card only because vodacom didnt want to give me a business top up contract due to the lack of a credit record they even forced me to open an clothing account and still they say i dont have enough credit record. If i dont have it i wont spend it, i am the sucker sitting at home over the long weekends because i dont have money for it and i dont even have insurance on my house items only on my car because it is my income (i am a consultant) I for one dont understand how people can live from credit it will keep me awake at night. I so badly want a new more reliable car but have to wait the interest rate will kill me, i am already living from baked beans and pap there is no way that i will be able to afford something else
3. Bull, I believe in living like a pauper and retire early, and then live like a king.
4. what I want to know is how do they sleep at night with all that debt hanging over their heads? Strange that you ask this question, just last night i heard that very affluent friends of ours are going to be sequestrated and their beautiful small holding with sea views, wild buck and horses are going to be auctioned off.....unbelievable, it seems for the past 5 years since we have know them they have been living on debt, and were in fact very affluent debtors....without a single penny in the bank. They have been taking money out of their bond to pay their bond repayments, cars, overseas holiday trips etc. Using their credit cards to buy food....All I can say is I rather be poor all the time than to be rich and then become poor, that must be the most terrible thing, moving from a mansion to a little flat, all of a sudden only having one car or no car etc.