Some consumers are still building buffers and paying down debt, while others are drawing on savings or credit to get through the month.
South Africans are cancelling subscriptions, eating out less and watching every rand. Almost four in 10 still expect to miss a bill or loan repayment.
The problem does not appear to be that South Africans have failed to get the message about saving. Consumer research suggests many are cutting discretionary spending, paying down debt and trying to build emergency funds.
But there is often little left between managing the month and being tipped into financial difficulty by an unexpected expense. “Consumers are still managing, but the margin for error is shrinking,” says Ayesha Hatea, director of research and consulting at TransUnion South Africa.
“Even modest increases in essential costs are forcing difficult trade-offs, which is reflected in lower confidence and more cautious credit behaviour.”
