South African Consumers Are in Financial Trouble — And It’s Getting Worse

Consumers Are in Financial Trouble. Let’s not sugarcoat it. Things are tough right now. You feel it every time you get to the till, fill up your tank, or try to stretch R500 for the week. And now the latest numbers confirm it: South Africans have less buying power than we did in 2016.

Even Easter, a time that usually brings a bit of joy and rest, was noticeably quieter this year. According to Standard Bank, consumer spending over the March–April holiday period was down. Travel, shopping, even charity, everything took a hit. Shené Mothilal from Standard Bank explained that when budgets are tight, non-essential spending is the first thing to go. Holiday travel used to be something South Africans squeezed in, even when times were tough. Now, it’s a luxury many can no longer afford.

Instead, people are focusing on the essentials. Transport and mobile data are now some of the biggest spending categories. That’s not surprising when you consider how important both are just to function day-to-day. And those yearly bonuses for those who still get them? Gone in a flash. Groceries, debt repayments and bills are swallowing up extra income before it even lands in your account. Even wealthier South Africans are scaling back on travel and discretionary spending. Everyone is feeling it.

And the debt? It’s climbing fast. The latest IDM Debt Index for Q1 2025 shows more and more people are using personal and payday loans to bridge the gap between income and survival. A staggering 91% of those applying for debt counselling now have personal loans. Over a third are also relying on payday loans. This isn’t just a low-income issue either.

People earning under R5 000 a month are using 76% of their income just to service their debt. But shockingly, those earning R30 000 or more are using even more, an average of 77% of their income goes to debt payments. That’s not sustainable.

It doesn’t take a financial guru to see why this is happening. Since 2016, electricity prices have skyrocketed by 135%, petrol by 88%, and overall inflation is sitting at 52%. Meanwhile, average incomes have barely moved. In fact, they’re 1% lower now than they were nine years ago. Only top earners have seen slight growth of around 11% since 2016, but even they are being hit hard. Their unsecured debt has jumped by 90%, nearly triple the national average.

So, what’s left? After debt repayments, the average South African only has about 25% of their income left for basics like food, water, electricity and transport. Lower-income households have it even worse. Food inflation has hit them the hardest, pushing many to cancel insurance and other essentials just to stay afloat.

Here’s the Good News

There is help, and it’s not too late.

At Sandton Debt Counselling, we work with South Africans feeling the pressure, every day. These days, most conumers have financial trouble, whether you’re dealing with loans, credit card debt, or you’re just overwhelmed by the cost of living, we can help you take back control.

We’re a team of NCR-registered professionals who legally restructure your debt, reduce your monthly payments and help you protect your assets without adding to your financial stress.

• Lower your monthly repayments so you can breathe again
• Protect your assets, like your car and home
• Combine all debts into one affordable repayment
• Stop creditor calls and legal pressure
• Get you back in control of your money, step by step

You don’t need to do this alone. We’ve helped thousands of South Africans move from survival mode to stability, and we can help you too.

Contact us today for an obligation free assessment. It wont cost you a thing and you will soon be able to see how our debt counselling process will be able to free up much needed cash. Take the first step and let’s walk this path, together.

South Africans are under more pressure than ever. Most people are experiencing some kind of financial stress. But no matter how deep the hole feels, there is a legal, proven way out. Let Sandton Debt Counselling help you take back control — safely, affordably, and without the stress.