Many South Africans relying on personal and payday loans to survive

DebtBusters’ Q1 2025 debt index says more and more South Africans are relying on personal and payday loans to survive the rising cost of living.

And that a third of South Africans with credit are struggling to repay their debts.

This includes individuals who are three months or more behind on payments, those facing legal action, or those with adverse listings.

Debt to income ratios for top earners are also at a record high despite growing consumer confidence.

And 91 percent of debt counselling applicants hold personal loans.

DebtBusters Chief Operations Officer Benay Sager says this is a staggering number.

“The challenge is that the costs come up and grow and the consumers feel the need to supplement them with additional sources of income. And the first port of call seems to be going for a loan, particularly personal loans. It shouldn’t have come to this stage, particularly for younger people. We really want to catch them earlier on and give them the right advise. But really for us it is at highest level since 2017. We haven’t seen numbers like this for almost 10 years.”

Video: DebtBusters says South Africans drowning in debt: Bennai Sager