In a recent interview with Smile FM, Annaline van der Poel discussed the findings of Debt Rescue’s latest national survey, highlighting how electricity hikes are pushing South African households past their financial limits.
Van der Poel explained why Debt Rescue conducts these surveys: “We think it’s so critical to know what consumers are experiencing and there’s no better way to do that than to ask them.”
A key finding was that “86% of respondents are cutting essentials to afford electricity.” Many consumers have switched to prepaid electricity to avoid bill shocks, but even then, “the electricity that they purchase is not reaching month end.” Families are now rationing power, some going days without electricity or switching to gas where possible.
Van der Poel also addressed the upcoming VAT increase, calling it “one of the most devastating things that we could see right now,” noting that the 0.5% increase is effectively “the equivalent of the VAT rate increasing by 3.33%.” The zero-rated food basket, she added, “is not a food basket for a month. It’s absolute basics.”
She explained the importance of debt review, saying, “We know it helps to prevent a debt spiral,” especially as consumers increasingly turn to credit and short-term loans to afford basics. “Debt counselling was created specifically to find a sustainable way to repay your debt but still to be able to buy your necessary living expenses.”
Finally, with winter approaching, van der Poel encouraged practical energy-saving habits like geyser insulation and reduced shower time, adding: “A couple of habit changes could potentially save some units in electricity.”
To hear more about the findings listen to the full interview with Annaline van der Poel on Smile 90.4 FM.
