New data indicates that while lower-income individuals are paying down their debts, more affluent citizens are facing financial difficulties even before the start of the month.
According to the latest Q2 Debt Index from DebtBusters, consumers with a monthly income exceeding 50,000 rand are forced to allocate 103% of their net income to debt servicing. Their total outstanding debt is equivalent to 307% of their annual net income.
The data shows that unsecured debt among this group of consumers has increased by 84% compared to 2021. Over the same period, cumulative inflation was 29%, while income growth in this group reached 7%.
Pressure on High-Income Citizens
Benay Seeger, CEO of DebtBusters, noted that the average size of unsecured loans has increased over the last decade, while the total number of such loans has decreased. He explained that this means larger unsecured loans are being issued to fewer consumers, concentrating credit risk in an increasingly narrow group.
The study also revealed a different trend among low-income consumers, whose total debt has decreased to 23%. However, DebtBusters clarified that this reduction reflects reduced access to credit, not an improvement in financial health. Among all consumers seeking debt advice, 64% of net income is now required for debt servicing, which is lower than the peak figure of 73% in the first quarter of 2021.
Financial Stress
The index also found that financial strain is increasingly affecting young consumers and those approaching retirement age. Seeger added that the number of consumers taking steps to manage their debt is growing, as the number of people successfully completing debt counseling has significantly increased compared to previous years.
He quoted data showing that in the second quarter of 2026, on average, 14 times more consumers successfully completed debt counseling than in the same quarter of 2016. These consumers paid their creditors 570 million rand through debt counseling—funds that might otherwise not have entered the economy. Seeger concluded that this is 'a powerful indicator of what debt counseling can achieve for individuals and the country.'