South African consumers struggle with debt despite interest rate cuts

DEBT experts believe that despite interest rates being cut by 100 basis points by the South African Reserve Bank from 2024 until July 2025, consumers are still struggling to get a handle on debt.

- YOGASHEN PILLAY

Benay Sager, the Executive Head of DebtBusters, said that South Africa has had 100 basis points of cuts, which is pretty significant. “Because it was done over a period of time, we haven't seen the full impact of it yet - but it does come as a relief to consumers, particularly those who have bonds or are paying for vehicles and so on. It’s also an indication that inflation is more under control."

Sager added that DebtBusters had recently completed the 2025 Money Stress Tracker, which indicated that debt levels are still elevated. "I think anecdotal evidence would support that as well as the hard data. The reality is that we borrow to make ends meet, and incomes haven't really kept up with inflation for the last 10 years or so, so there's still some borrowing to work through the system."