Debt Rescue says it is witnessing a growing number of consumers relying on credit — including costly short-term loans — simply to cover essentials such as food, fuel, electricity and water.
CEO Neil Roets warns that the crisis has shifted from being purely economic to deeply human, with families pushed to the brink as they struggle to survive month to month. He warned that South Africans are heading into 2026 under severe and worsening financial strain, as rising living costs, stagnant wages, and high interest rates push millions of households deeper into debt.
The South African Reserve Bank’s Monetary Policy Committee has kept the repo rate unchanged at 6.75%, leaving the prime lending rate at 10.50%. While economists expected the decision, financially strained consumers had hoped for at least some relief to ease the pressure of high borrowing costs. Instead, the pause has been met with dismay.
Debt Rescue says households have entered 2026 already burdened by accumulated debt, rising back-to-school expenses and surging living costs that continue to outpace wage growth.
Middle-income earners continue to carry the heaviest load, holding close to 13 million loans. Lower-middle-income consumers — mostly women with store accounts and credit cards — took out 2.1 million new loans in just one quarter, mostly retail and personal credit. “This tells a story of a nation in deep financial waters and relying on credit to keep going,” warns Roets, who believes authorities are not responding urgently enough to the red flags.
According to Debt Rescue’s latest survey, 87% of consumers feel worried, stressed, anxious or completely overwhelmed by their financial situation.
For many households, survival means making impossible choices — borrowing to buy food, using credit to keep the lights on, choosing between electricity and groceries, and cutting essential items from already bare-bones budgets. He said millions of South Africans who cannot access credit are even worse off, forced into harsh trade-offs as they try to stretch incomes that are not keeping up with rising costs.
Roets cautions that the physical and mental health consequences of financial pressure are becoming evident across the country, with many consumers feeling trapped in a cycle they cannot escape. With the cost of living still climbing and interest rates remaining high, Debt Rescue expects more consumers to rely heavily on credit — and some to turn to harmful coping mechanisms, including gambling, in desperate attempts to cover expenses.
Roets says the government must prioritise the well-being of ordinary South Africans as economic pressures mount. He advises those feeling overwhelmed by debt to seek assistance from registered debt counsellors, who can help restructure payments and offer a pathway out of over-indebtedness.
“Consumers are buckling under the weight of financial pressure,” he says. “But help is available — and no one should face this crisis alone.”