Four in 10 South Africans risk missing debt payments amid rising financial pressure
This is according to TransUnion's second quarter Consumer Pulse Study, which surveyed 922 adults between 5 and 25 May. The data shows that about a fifth of consumers reported a decline in household income during the period, while 38% said their income had increased. Despite nearly 39% indicating they may miss at least one bill or loan payment in the near future, three quarters are still optimistic their earnings will rise over the next year.
FinMark Trust's 2024 Financial Inclusion Report, released this May, also presents concerning information. An estimated 10 million South Africans are over-indebted, with 37% of formal credit borrowers facing repayment issues, FinMark found.
Spending patterns have changed in response to the current economic environment, TransUnion's report found. More than half of respondents said they had reduced non-essential spending on areas such as entertainment, dining out and travel. Many are also paying off debt faster, saving more through emergency funds or stokvels, and 37% intend to increase retirement or investment contributions.
'At TransUnion, we believe these shifts represent not just resilience, but growth,' said Ayesha Hatea, director of research and consulting at TransUnion. 'South Africans are taking ownership of their financial journeys and in doing so, they're laying the groundwork for lasting stability and inclusion.'
Hatea added that people are 'not simply reacting to pressure, they're taking charge, rebalancing their finances and protecting their future'.
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