-
[FILE] The Budget Justice Coalition says the 2021 national Budget will deepen inequality.
DebtBusters’ latest debt index for the first quarter of 2025 shows a growing number of South Africans are relying on personal loans to manage their expenses as the cost of living continues to rise.
The index reveals that one in three South Africans is struggling to repay their debt, with 91% of those entering debt counselling holding personal loans.
DebtBusters Chief Operations Officer Benay Sager says the figures are concerning.
“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 the personal loans. It shouldn’t have come to this stage. Particularly for younger people,” says Sager.
“We really wanna catch them earlier on and give them the right advice. But really for us it is at its highest level since 2017. We haven’t seen numbers like this for almost ten years,” he adds.
VIDEO | DebtBusters says South Africans drowning in debt: Bennai Sager
