IMPACT: 65% had to drastically change festive plans due to high cost of living
There will again not be all that much ho-ho-ho for South African consumers as about 94% of survey participants indicate they enter the peak festive season under severe financial pressure.
Statistics from a recent Debt Rescue survey paint a grim picture of households across the country hanging on by a thin thread, or no longer able to hang on at all, as we head into peak festive season – traditionally the season of spending and splurging. The survey was conducted to determine the real state of consumer finances at this time of year, focusing on the festive season’s expenses in the face of the nation’s economic hardships.
Neil Roets, CEO of Debt Rescue, says more than two-thirds of survey respondents (71%) confessed that they are just about coping (39%) or are under severe financial pressure (32%) as they wind down towards the end of the year. The survey results also reveal that a major portion of households (39%) cannot afford to celebrate the festive season at all this year.
“These are two of the most concerning insights from our survey, as they indicate a nation in deep financial trouble. When households cannot scrape together even a few extra rands to celebrate what is perhaps the most important few weeks of the year, there is reason for grave concern,” Roets warns.
He says possibly the most distressing survey outcome of all is that two-thirds of people say they had to drastically change their festive season plans due to the impact of the high cost of living. “Almost two-thirds polled (65%) have cancelled or changed their festive plans due to their financial circumstances. It is incredibly sad that financial hardship is reshaping our festive traditions.”
Survey respondents listed food as their number one worry this December, with groceries and food coming through as the cause of festive stress among more than half of the households polled – more than all other categories combined.
Another red flag is that 65% of people polled said festive season spending contributes to their long-term financial struggles, as they generally overspend on their budget or accrue more debt. Roets says the pressure that 61% of the respondents feel to spend money they do not have is equally concerning because it inevitably leads to even more hardship in the months to come, especially as most (77%) are not expecting a bonus or 13th cheque to help reduce the financial burden this year.
He points out that the relentlessly increasing costs of essentials like electricity, water and transport have pushed a significant portion of the population into financial distress and below the poverty line, with households now having to make tough decisions about which necessities to prioritise.
According to the threshold set by Statistics SA, 9.3 million people in South Africa – more than a third of the nation – are living below the lower-bound poverty threshold of R1,300 per month. This is the line in the sand forcing trade-offs between food and other necessities.
Roets says this is supported by the latest findings of the Pietermaritzburg Economic Justice and Dignity group’s Household Affordability Index report for November 2025, which shows that average South African workers spend more than 60% of their monthly earnings on transport and electricity alone, leaving little for other necessary expenses.
“Against this backdrop, the findings from the Debt Rescue survey take on added significance, with a distressing number of people polled voicing their concern relating to food inflation.”
However, it is encouraging that 40% of people who participated in the survey say they will be spending much less this year on festivities than last year. This reflects a shift to heightened financial caution and a reality check.