Despite financial strain, South Africans make a plan

EVEN though consumers seem to be feeling somewhat less financially stressed lately, there is no doubt that money worries still take a substantial toll on their daily lives.

- NICOLA MAWSON

Debt review company DCGsa paints a sobering picture of debt in South Africa through a collation of numbers on its website: R2.56 trillion in loan balances, R208 billion in overdue payments, and 17.97 million accounts in arrears.

DebtBusters' latest annual Money-Stress Tracker, now in its fourth iteration, found that 70% of respondents have felt money stress this year, which, although an eight-percentage-point decrease since 2023, is still a worrying picture. The results of the survey, conducted in May and June, among 27 000 respondents not currently in debt review, found that nine out of ten who experience money stress say it affects their home life. Almost three-quarters report a negative impact on their work life and health. DebtBusters isn't alone in finding that money is an issue.

TransUnion's first-quarter industry insights report, the latest available, found that more money was loaned out in the form of credit cards and car loans than in the same period in 2024. Ayesha Hatea, director of research and consulting at TransUnion, says on its website that "South Africans are increasingly turning to low-value personal loans with shorter repayment terms to manage their monthly expenses.

"However, persistently high delinquency rates, particularly among non-bank personal loans, indicate that many consumers are under significant financial pressure and struggling to meet their loan commitments."