MAXED-OUT credit cards, late payments and a deepening debt crisis are just some of the financial issues plaguing South African consumers as they approach Black Friday; not with wishlists, but with worries.
Black Friday, the day after Thanksgiving in the United States, marks the start of the festive shopping season, a phenomenon that has spread globally. But in South Africa, most consumers’ finances remain in the red, not black, leaving little room for splurges this year.
The situation is so dire that the National Credit Regulator (NCR) has issued warnings urging consumers to “stay home, stay offline” if they haven’t planned for the spending period. “Don’t let Black Friday and Cyber Monday lead to blacklisting,” the NCR advises in messages circulated in multiple languages.
Rising food costs, persistent unemployment, and steadily increasing utility bills mean shoppers are likely to focus on essentials rather than luxuries.Debt counsellors report that, despite a few recent interest rate cuts, including a 25-basis-point cut this week, many South Africans are still struggling to keep the wolf from the door.
Annaline van der Poel of Debt Rescue says they are seeing record numbers of consumers grappling with debt.
“This Black Friday, people will be hunting for grocery specials, school uniform and stationery discounts, and other everyday necessities,” she says. “Black Friday is no longer just about luxuries. Consumers are planning ahead to stock up where it benefits them.” Van der Poel adds that given the country’s high levels of indebtedness, consumers are now more price-conscious and deliberate with spending.
“There’s a bigger dependence on short-term credit, particularly on existing facilities like credit and store cards. We’re also seeing a surge in personal loans, especially payday loans. People are borrowing just to get through the month and put food on the table.” The scale of the debt struggle is massive.
StatsSA said that in September this year, 31 818 civil summonses were issued for debt, with 9 779 judgments amounting to R304.4 million. The largest contributors to the total value of judgments were “other” debts (R72.2 million), money lent (R65.7 million), services (R63.6 million), and promissory notes (R53.8 million).
TransUnion’s Q3 2025 Consumer Pulse Study reveals that while 75% of consumers expected their income to increase, 36% anticipated being unable to pay their current bills or loans in full. Rising costs for groceries (82%), utilities (60%), fuel (52%) and medical care (52%) are driving these concerns.
TransUnion also revealed that age also affects financial habits: nearly half of Gen Z (48%) and Millennials (43%) reported they will apply for new credit or refinance existing credit in the next year, compared with lower intent among Gen X and Baby Boomers. Younger generations also lead in using “buy now, pay later” services.