High personal debt no longer triggers alarm for many South Africans – not because they ignore their financial obligations, but because living with significant debt has become normalised.
The fourth annual DebtBusters Money-Stress Tracker shows that nearly half (48%) of respondents spend more than 40% of their take-home pay on debt repayments, while 63% allocate at least 30% of their income to servicing debt. DebtBusters advises that repayments should not exceed 30%, with 40% as an absolute maximum. Beyond that is unsustainable.
Despite these risky levels, more consumers now believe they are doing better than their peers. The share of respondents who think they have less debt than others rose from 18% in 2022 to 32% this year – a perception that may be influencing spending habits and masking financial risks.
Benay Sager, the executive head of DebtBusters, said age and income strongly shape how people perceive their debt. Social comparison plays a major role in behaviour.
“Perceptions are very much driven by age and income groups. So, what we’ve observed is that over the last four years, the percentage of people who think that they have more debt when compared to their peers kind of fluctuated, but the ones who believe that they have about the same level of debt has come down, and the ones who believe they have less debt is actually increased substantially.”
Sager suggests this reflects a psychological adjustment: “Three years ago, there was 18%. So, what does that mean in terms of driving human behaviour? We think perhaps we’ve become a bit desensitised to levels of debt. So, we believe that we have less debt than everyone, but also when we believe we have less debt than others, and we see others buying things, it makes us want to buy things.
“Simply put,” he added, “we buy things because other people buy things. And if we cannot buy things with cash, we’ll buy things on credit.”
Although perception-driven borrowing is only one factor, Sager emphasises it remains a significant driver of debt behaviour: “We think that it’s driving some of the borrowing behaviour. Not all of it, but some of it.”
Money too tight to mention
Although many see debt as a normal part of life, financial anxiety remains high. The Money-Stress Tracker surveyed more than 27 000 DebtBusters website subscribers (not under debt review) during May and June 2025, measuring the impact of financial stress on home, work, and health.
South Africans are less worried about money than in recent years, with financial stress levels returning to those last seen in 2022. Still, 70% of respondents reported money stress – down from 78% in 2023 and 75% in 2024. Among those stressed, 91% said it affected their home life, 73% their work, and 73% their health.
Sager acknowledged the slight improvement but said the numbers remain alarmingly high: “It’s still very elevated. If seven out of 10 people are telling us that they’re struggling financially, that’s still very, very important. We need to always put that into perspective. Having said that, small gains are welcome. We want to bank on those and then build on them further.”
Despite ongoing pressure, people report feeling more in control, optimistic, and willing to seek help such as debt counselling. DebtBusters attributes this shift to fewer national traumas, reduced inflation, less perceived stress, and a growing sense of agency in managing money.
For the first time in years, a sense of stability is emerging. Sager said the absence of large-scale disruptions such as loadshedding and social unrest has allowed people to regain emotional bandwidth and reframe their finances. With even a small drop in stress, they are starting to look beyond short-term survival.
Collaborating psychologist Andrea Kellerman explained that even a modest 5% decline in stress – from 75% to 70% – significantly improves functioning. This small change has helped people to sleep and cope “a bit better”, underscoring how minor improvements boost resilience and outlook.
Reflecting on South Africa’s recent crises – including loadshedding, floods, looting, and Covid-19 – Kellerman said these challenges continue to weigh heavily on people, particularly regarding survival and financial pressure.
She described how, under acute stress, the brain focuses on negative stimuli, magnifying threats. This response is akin to a primitive fight-or-flight reaction, where cortisol and adrenaline rise, narrowing perspective and stifling creativity.
However, Kellerman said, as stress begins to ease, people gain a broader perspective and renewed creativity. She observed that with lower stress levels, individuals are able to explore innovative solutions and think more creatively, allowing people to approach challenges with a more positive outlook.
Despite a slight improvement in stress levels overall, Sager noted that more than 90% of South Africans with unsustainable debt still don’t seek professional help.
“This underscores the ongoing importance of stress-management programmes, financial education, and awareness campaigns that address stigma and promote early intervention. It also highlights the need for innovative solutions, especially those that help consumers stretch their money further.”
Who is feeling the weight of financial stress the most?
Financial stress is not evenly spread across society. Three groups stand out as bearing the heaviest burden.
First are women, who often juggle multiple demanding roles – as caregivers, professionals, mothers, and daughters – carrying the weight of entire households’ well-being. This multifaceted responsibility translates into a disproportionately high level of financial stress. Nearly three out of four women surveyed reported feeling stressed about money. Compared with men, women experience about 10% more financial anxiety and are 20% more stressed about work, home life, and health.
Next are those earning more than R20 000 a month. Although a higher income might suggest greater financial security, it often means greater access to credit – and with that, financial obligations that can exceed earnings. This group faces the pressure of managing larger debts, which compounds their stress.
Finally, individuals over 45 are feeling the squeeze as retirement looms closer. Many belong to the so-called “sandwich generation”, caught in the middle of supporting both their children and their ageing parents, all while trying to safeguard their own financial future. This triple responsibility makes financial stress particularly acute for this age group.
Key financial concerns shaping stress
For many South Africans grappling with financial stress, short-term worries remain front and centre. The most pressing anxieties are running out of money before the month ends and struggling to meet monthly debt repayments.
Although the strain from rising interest rates continues to weigh on households, its impact has lessened compared with the heightened concerns seen in 2023 and 2024.
When looking at age groups, those between 35 and 44 report the highest levels of financial stress. For people aged 45 and older, concerns about retirement have grown compared with last year, suggesting this group is beginning to shift focus from immediate financial pressures to longer-term planning.
Income also plays a significant role in shaping financial worries. Lower-income earners remain most concerned about the impact of interest rate hikes and unexpected expenses.
Electricity costs have become a growing worry across all income levels since 2024. However, retirement anxiety is particularly pronounced among higher earners.
‘Savings fatigue’ is setting in
The Money-Stress Tracker finds shifting patterns in how South Africans respond to financial pressure. The number of respondents actively cutting back on monthly spending has declined to 37%, down from 43% in 2022 – suggesting that “savings fatigue” has begun to set in.
At the same time, more people are exploring ways to boost their income. In 2025, 35% reported seeking better-paying or more secure jobs, up from 26% in 2022. This trend is particularly pronounced among younger consumers, who are nearly four times more likely than those over 35 to look for improved employment and show 56% more intent to stick to a budget or improve their financial situation.
Coping strategies have also evolved. In earlier years, respondents were more likely to pursue side hustles or job changes. In 2024, debt counselling emerged as the most common response to financial stress. The current shift appears to favour entrepreneurial efforts, multiple income sources, and greater financial independence – pointing to a growing preference for long-term, self-directed solutions.
Sager said most people respond to financial stress by either trying to increase their income or reduce their spending. However, he believes there’s a noticeable decline in energy towards both. “Compared to a few years ago, I think there’s a bit of fatigue. I think that consumers lost a bit of enthusiasm for trying to control expenses, as well as trying to increase income.”
He explained that activities such as budgeting and cutting back on monthly costs are less common now, as are more proactive measures such as selling items, asking for financial help, or starting a side hustle.
“There are fewer taking active steps to deal with the money stress compared to a few years ago,” he said. “Simply put, the response to money stress is very low on intent… less action-oriented than in the past.”
