This past Wednesday brought what many hoped would be a breath of relief: petrol prices dropped by 22 cents, with diesel and LP gas prices following suit. For the average motorist, it might not seem like a massive saving, but for families balancing on the edge of debt, every cent counts.
Annaline van der Poel, Chief Operating Officer of Debt Rescue, joined eNCA to explain why even a modest decrease like this could make a difference, if only temporarily.
“It’s a few cents here and there, but it adds up,” Van der Poel said. “Go through your bank statements and look for those small opportunities to save the rands and cents. It does matter.”
With the winter months settling in and Eskom’s electricity hike hitting pockets hard, she pointed out that while the fuel reduction is welcome, it’s likely to be canceled out by increased energy usage:
“We’ve just had an electricity price increase. Unfortunately, we are struggling as consumers because our debt is still unachievably high to repay.”
And the bigger picture? Inflation is still quietly eroding household budgets, and salaries are not catching up. Interest rates remain at decade-long highs. Despite three fuel price cuts in a row, consumers aren’t seeing costs go down elsewhere, especially not on food or essentials. “Everything in this country is transported by road. When fuel goes up, prices rise. But when fuel comes down, we rarely see the same reaction,” she explained.
The reality, Van der Poel said, is harsh: many people are now using credit to pay for basics like food and fuel. “You’re consuming the product before you’ve even paid for it, and if you can’t settle your credit card in time, the interest makes it even more expensive.”
So when should someone reach out for help?
Van der Poel’s advice is simple and direct:
“If you’ve simplified your budget, made all the cuts you can, and your income minus your basic expenses still doesn’t cover your debt repayments, you’re over-indebted. That’s when you need to speak to a debt counsellor.”
Watch the interview here:
