Why over 45 are spending half their income on repayments

THE 2025 DebtBusters Money-Stress Tracker reveals that South Africans over the age of 45, earning more than R20 000 a month, are facing a growing debt crisis. These individuals are now among the most financially stressed in the country, with 48% spending nearly half of their take-home pay on debt repayments. However, it's possible to regain control of your finances and secure a stable future with strategic action and a clear understanding of your financial position.

- AFUA DARKO

Data from the Sanlam Credit Solutions Credit Confidence Index, which analyses over 818 000 active credit users, supports this trend. The index shows that a significant 37% of Gen X users (44-58) spend over half their monthly income on debt repayments.

With the cost of essentials like food, transport, and electricity continuing to climb, many people find their salaries are failing to meet their family's basic needs.

This relentless pressure leaves them feeling overwhelmed and turning to credit to survive. This debt burden has a profound impact on daily life, with the Money Stress Tracker revealing that 91% of stressed individuals feel it affects their home life, and 73% report an impact on work and health.

A key driver of this pressure is the changing nature of the credit people are using. We are seeing a shift towards unsecured, high-interest credit. The market for personal and one-month loans has exploded with new entrants.

NEW research reveals 48% of South Africans over 45 earning R20,000+ spend nearly half their income on debt, impacting their health, work, and family. Experts share strategic ways to regain control before retirement. I FILE

Sanlam's data confirms this, showing that personal loans (56%) are the most common credit products held by Gen X. This strain can create a cycle where each successive generation inherits financial responsibilities that prevent them from building their own wealth. Breaking this cycle requires a proactive and honest approach to managing debt.