South Africans paying back interest on loans were given no reprieve this past week after the South African Reserve Bank (SARB) opted to keep the repurchase rate (repo rate) unchanged.
This means the repo rate will remain at 6.75%, translating to the prime lending rate also staying the same at 10.50%. The repo rate, which acts as a key determinant of interest rates across the economy, plays a critical role in shaping the financial landscape for borrowers.
Experts have expressed mixed reactions to the SARB’s decision. While some believe that stability in borrowing costs is essential for encouraging consumer spending and stimulating growth, others caution that prolonged high-interest repayments could exacerbate financial strain for many South Africans.
Neil Roets, CEO of Debt Rescue, told Business Report that South Africans are entering deeper into 2026 under severe financial strain, driven by persistently high living costs, limited income growth, and borrowing costs that remain elevated.
Roets said that while it is understandable that the SARB would ultimately weigh both domestic inflation conditions and global risks before taking the next step in the rate-cutting cycle, the state of the consumer should be the utmost priority for government right now.
“South Africa’s consumer credit crisis isn’t a matter of balance sheets and interest rates. It’s a story of households pushed to the brink, of parents borrowing to feed their children, and of ordinary citizens trapped in a cycle of debt just to survive through each month,” Roets said.
“The country’s economic stress factors, from high borrowing costs to rising prices for essential goods and services like food, fuel, electricity and water, are forcing millions of consumers to lean heavily on credit and personal loans to make it through the month.”
“Households have entered the year already weighed down by accumulated debt, back-to-school costs and essential living expenses that continue to rise faster than incomes can stretch,” Roets added. “Right now, life is grim for South Africans from all walks of life who are buckling under the physical and mental repercussions of debilitating financial pressure.”
A recent Debt Rescue survey found that 87% of consumers polled currently feel worried, extremely stressed and anxious, or completely overwhelmed by their financial situation.
“My advice to those who cannot break free from their financial constraints is to seek help from a registered debt counsellor who can assist them to manage their financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,” Roets said.