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Person with an empty wallet
The legal, psychological, and employment implications of over-indebtedness and financial stress cannot be ignored.
That’s according to Associate in Employment Law at Cliffe Dekker Hofmeyr, Malesela Letwaba.
Letwaba says excessive debt has been linked to deteriorating mental health, impaired decision-making, and diminished functional capacity.
“Employees with changing times, rising inflation and the demand for more wants tend to over indebt themselves or become financially over stretched and as a result when they are unable to meet their financial commitments. It has a knock-on effect on their ability to perform at work, mainly because they are stressed out in that they cannot meet their financial obligations and thereafter their work outputs, their productivity, the morale is affected in the workplace. This is the mental effects of one being over stressed vs their performance in the workplace.”
PODCAST | Over-indebtedness and mental health:
South Africans under severe financial stress
Meanwhile, 75% respondents surveyed by the Debt Busters’ Money-Stress Tracker say they are under financial stress.
One of the main concerns raised is the fear of running out of money before their next pay day, as well as not being able to pay off debts.
The survey was done online between May and June last year.
Details in the report below:
-Additional reporting by Nothando Magudulela
