Article by Kotie Geldenhuys
Photos/images courtesy of Freepik and Unspash
With the festive season fast approaching, many consumers feel the pressure to splurge on special gifts for loved ones – from sparkling jewellery to the latest PlayStation. Desperate shoppers unable to afford the hefty price tags may be tempted to borrow money, not from authorised financial institutions but from illegal moneylenders, known as loan sharks. Their attempts to make their Christmas wishes come true can carry dangerous consequences.
According to the South African Reserve Bank, South Africans are collectively indebted to the tune of R1.7 trillion! More than 25 million people, nearly half of the country’s population of 60.6 million (currently 63.1 million), owe money to banks and money lenders (Hippo, 2023). As many cannot qualify for loans at authorised financial institutions, increasing numbers of consumers are turning to alternative lenders. Although some of these alternative lenders are registered financial service providers regulated by the National Credit Regulator (NCR) and subject to the Consumer Protection Act, they often charge the maximum interest rates allowed by law (Nedbank, 2024).
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[This is only an extract of an article published in Servamus: November 2025. This article is available for purchase.]