Working South Africans are increasingly turning to personal loans, family, friends, stokvels and informal lenders as electricity, water and other household costs rise faster than overall inflation.
South African households are facing a growing financial squeeze as rising living costs force more consumers to rely on credit to make ends meet.
Last month, Statistics South Africa revealed that consumer inflation increased to 5% in June, its highest level since June 2024, as transport costs, housing and utilities continued to put pressure on household budgets.
The increase came at a time when many consumers were already struggling with rising monthly expenses.
The latest Cost of Living Report from the Competition Commission also showed that the prices of essential services have increased significantly in recent years, adding further pressure on household finances.
