Debt burdens are elevated, and income growth is not keeping pace with rising costs.
South Africans earning more than R50,000 per month are now spending more than their entire salaries servicing debt, despite months of interest rate relief and withdrawals from the two-pot retirement system helping consumers to stay afloat.
The latest DebtBusters Debt Index for the first quarter of 2026 found that consumers in the highest income bracket now require 101% of their take-home pay to service debt every month, while their debt-to-income ratio has climbed to 303% - the highest of any income group.
DebtBusters executive head Benay Sager told IOL that people in this income group are actually not paying their debt so they can afford items such as food and water. He explains that the 101% is what the amount would work out to if they were paying what they owe, and this is why they are seeking help through debt counselling.
Sager also said successive interest rate cuts and access to retirement savings through the two-pot system had provided temporary financial relief to many households.
