Consumers aged 35 and under are engaging in risky borrowing and spending behaviour, exposing them to unsustainable debt and credit worries compared to previous generations of consumers in the same age group.This is according to Vantage Debt Management CEO Damon Sivitilli. Speaking to the Business Times this week, he said exposure to digital finance solutions and subscription-based services has left the current generation of young workers comfortable with credit and debt.“Within the under-35 age group, 85% have store cards, meaning only 15% don’t. That speaks to the financial reliance on these debt facilities — subscriptions, apps and entertainment spending when it comes to streaming and AI services, gym contracts, and things that consumers might not even use.“Vantage Debt Management is a financial wellness and debt rehabilitation business. We founded this business to change the narrative of the debt counselling industry. Debt volatility has become especially prevalent amid a steep cost of living.”The company helps consumers who are struggling with debt repayments and who approach it when debt repayments take up a large portion of their salaries and they don’t know where to turn anymore.Sivitilli said credit profiles are being opened sooner and people are trying different forms of debt, including short-term loans, payday loans, and overdrafts. Consumption patterns have shaped a youth that is normalised to credit and lending.Within the under-35 age group, 85% have store cards, meaning only 15% don’t. — Damon Sivitilli, Vantage Debt Management CEO “It’s obviously an interesting stat, but it’s also quite worrying. Historically, debt providers and consumers who had debt were in the 40-plus age category. People who were fresh out of varsity didn’t really need debt. “But in 2026, convenience spending, such as food apps and transport apps, means you have to have a credit card as soon as you start working. This, we think, is a gateway into getting credit.“People under 35 are typically entering the work market at the lower end of the salary scale. Because a basket of goods and general groceries cost the same for everyone, these take up a large portion of the younger workforce’s income because they’re earning relatively less.“These pressures hit younger consumers more than those over 35, who are generally earning a higher salary and can handle the inflationary pressures a lot more relative to their income. “When you see costs shoot through the roof and people realise they haven’t accommodated these costs, it forces consumers to rely on overdrafts and credit cards; they wouldn’t be able to afford their costs anymore.”Regarding two-pot withdrawals from consumers 35 and under, he said the system was implemented to encourage spending and GDP growth and to be used to invest for the right reasons. “It also allows people to access hard-earned money that is meant for their future. Over R50bn was drawn in the 2025 tax year. That could be used as cash in place of taking out loans. “It’s been implemented, but not many have educated themselves on the implications. A lot of times, when people have this easy access to money, it’s probably not going to be used on something that will create value for them, but rather on consumerism. Some of it might be used to pay back debt, which might be a good idea, but we are not seeing it being used on something that will give value.”There is a significant difference between a previously reliable payer facing temporary hardship, a customer disputing charges, a first-payment defaulter and a habitual non-payer who has the means but no intention to cooperate— Ian Wood, CEO of Alefbet Collections and Recoveries,He said credit providers have their own lending criteria. “It’s advantageous when we can assess clients ahead of time. Traditional banks offer credit cards and loans, and as those become harder to attain, they will look towards micro-lenders, where rates are less favourable,” he said.Louna Robertse, Old Mutual’s head of product and research services, said two-pot data proves the system is working to support employees who continue to be in financial distress. “Earned Wage Access [at] 20% adoption, debt counselling and financial education belong in your employer value proposition, not your wellness afterthought.”Ian Wood, CEO of Alefbet Collections and Recoveries, said a customer who is given a short, properly structured breathing space may be far more likely to re-engage and regularise their account than one who feels cornered, shamed, or pushed into an impossible promise to pay. “This principle applies across sectors, from financial services and retail credit to telecommunications and other consumer-facing portfolios. Empathic collections also depend heavily on segmentation. Not every delinquent customer should be treated in the same way. “There is a significant difference between a previously reliable payer facing temporary hardship, a customer disputing charges, a first-payment defaulter and a habitual non-payer who has the means but no intention to cooperate. “Strong collections operations use data, analytics and judgment to route these customers into different treatment paths.”Tando Ngibe, senior manager at Budget Insurance, said families are facing difficult financial decisions every day, whether it is putting food on the table, paying for transport to work or school, keeping up with debt repayments, or covering basic household expenses. “These figures come at a particularly difficult time, following recent increases in food prices and fuel costs, both of which continue to place additional strain on already stretched household budgets.”Business Times