Debt experts have raised concerns that escalating fuel prices, food costs and inflation are placing severe financial strain on South African consumers, forcing many to rely increasingly on credit to make ends meet.
Neil Roets, CEO of Debt Rescue, on Wednesday said the pressure facing households has become widespread and more intense, affecting multiple areas of daily spending at once.
“The pressure is no longer isolated to one or two expense categories. It is widespread, persistent and intensifying,” Roets said.
“Fuel price increases, higher electricity tariffs, and ongoing food inflation are all hitting households at the same time, creating a perfect storm for financial strain.”
Roets added that the fuel and electricity price hikes that came into effect on 1 April 2026 have already proven to be devastating on consumer pockets.
“These increases do not exist in isolation, but filter through every part of the economy. Higher fuel costs drive up transport and logistics expenses, which in turn push up the price of food and essential goods.”
Roets said that at the same time, increased electricity costs raise the baseline expense of running a household.
“These are not optional costs that consumers can simply cut back on, which makes the impact even more severe. We are already seeing the impact of this play out in real time,” he said.
“The reality is that the current financial pressure is not driven by reckless spending, but by a sustained increase in the cost of living that is beyond consumers’ control.”
Roets said that wage growth has remained largely stagnant, and where increases have been granted, they are often insufficient to offset the rising cost of essentials.
“This leaves many consumers with no choice but to rely on credit to bridge the gap between income and expenses, which is precisely where debt counselling plays a critical role in providing structured relief for those who have become over-indebted due to these external pressures, and prevent a debt spiral.”
Roets added that over time, this reliance on credit becomes unsustainable.
“Consumers find themselves using one form of credit to service another, which is a clear sign of growing financial distress and a pathway to over-indebtedness if not addressed early.”
Roets said that this environment is likely to continue driving an increase in the number of consumers turning to debt counselling, and importantly, this should not be viewed negatively, but rather as a responsible step towards regaining financial stability in a climate where rising costs beyond consumers’ control continue to outpace income growth.