Interest rate relief offers breathing space, not a turnaround in household finances
Despite easing inflation and lower borrowing costs, South Africans entering debt counselling use 71% of take-home pay to service debt, according to DebtBusters.
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Debt crisis deepens: South Africans using up to 75% of income to repay debt
DebtBusters’ Q4 2024 Debt Index reveals a worsening cash flow crunch, with rising reliance on short-term loans and record-high debt service ratios.
Why your salary feels smaller: purchasing power plummets as debt levels soar
Even as inflation eases, high interest rates continue to erode incomes, forcing many South Africans to rely on loans to get by.
