Skip to main content

South Africans are taking out credit just to put food on the table

| Economic factors

South Africans are truly struggling financially and are prioritising their monthly debt repayments as they battle to make ends meet.

This is according to Debt Rescue CEO, Neil Roets, who said that consumers typically prioritise debt repayments for their homes and cars as these are assets that they do not want to lose to repossession.

However, these repayments also usually have the highest instalment amounts, so keeping them up to date just adds to the financial burdens embattled consumers are already facing, he said.

Roets added that consumers are cutting down on a number of purchases to keep up on their expenses.

“We have seen a lot of belt-tightening happening over the past year, so consumers have started cutting down on many expenses,” he said.

“Most luxury expenses have been foregone, and purchases such as dining out and takeouts are no longer part of budgets, to keep up with debt repayments and put food on the table.

South Africans are truly struggling financially and are prioritising their monthly debt repayments as they battle to make ends meet.

This is according to Debt Rescue CEO, Neil Roets, who said that consumers typically prioritise debt repayments for their homes and cars as these are assets that they do not want to lose to repossession.

However, these repayments also usually have the highest instalment amounts, so keeping them up to date just adds to the financial burdens embattled consumers are already facing, he said.

Roets added that consumers are cutting down on a number of purchases to keep up on their expenses.

“We have seen a lot of belt-tightening happening over the past year, so consumers have started cutting down on many expenses,” he said.

“Most luxury expenses have been foregone, and purchases such as dining out and takeouts are no longer part of budgets, to keep up with debt repayments and put food on the table.

“Many consumers are resorting to credit in the form of store cards, credit cards or payday loans to put food on the table.”

Roets said this was of great concern as it shows that South Africans are taking on debt to cover day-to-day expenses.

“Day-to-day expenses that consumers are taking debt for includes food, clothing, electricity and fuel for transport,” he said.

“But there are cases where people are taking up debt to repay other debt, or a new payday loan shortly after the previous one was repaid, placing them in an even larger debt spiral.”

Pin It

Related Articles

By: Siphesihle Buthelezi – IOL South African consumers are feeling the impact of the rising costs of living with a notable shift in their financial behaviour. 
By:  Lynette Dicey - BDLive More than 80% of South Africans are using loyalty programmes — up from 76% in 2023
By: Denise Neethling - head of marketing at Paymenow With the VAT increase looming on May 1, 2025, and the usual seasonal price hikes across various sectors like insurance and electricity, South Africans face a tightening financial landsc…
As politicians around the world scramble to respond to US “liberation day” tariffs, consumers have also begun flexing their muscles. 
By: Siphelele Dludla – IOL Business Report Prices for finalised manufactured goods in South Africa are expected to tick up during the course of the year in spite of the Producer Price Inflation (PPI) moderating in February.