Despite recent relief from lower interest rates and access to retirement savings, South African households are still grappling with high debt levels, as revealed by the latest DebtBusters Debt Index.
South African households received some relief at the start of 2026 as lower interest rates and access to retirement savings through the two-pot system eased financial pressure. But beneath the reprieve, debt levels remain dangerously high, with many consumers increasingly reliant on unsecured credit to survive.
This is according to the latest DebtBusters Debt Index, which marks its 10th anniversary this year and paints a picture of households still struggling to keep pace with the rising cost of living.
According to the report, consumers who applied for debt counselling in the first quarter of 2026 needed 64% of their take-home pay to service debt. Although this is an improvement from the peak of 73% recorded in the first quarter of 2021, it still reflects severe financial strain among indebted households.
Benay Sager, executive head of DebtBusters, said the pressure on consumers remains significant despite recent relief measures.
