South Africa’s R50,000 earners are spending more than they make on debt

South African consumers earning over R50,000 per month are struggling to manage their debt, with debt service costs exceeding 103% of their take-home pay. Their total debt amounts to 307% of their annual net income. Unsecured debt, which includes credit card and personal loans, has surged 84% higher than in 2021. Despite a 29% inflation rate over the same period, income for this group only grew by 7%.

DebtBusters, a leading debt management firm, attributes this debt burden to the increasing size of unsecured loans, which have grown over the past decade while the number of loans has decreased. This trend has led to larger, more concentrated loans, amplifying credit risk. On the other hand, lower-income consumers are actually reducing their overall debt by up to 23%, a decline attributed to limited credit access rather than improved financial health.

Overall, 64% of take-home pay for all consumers is now devoted to servicing debt, a decline from the peak of 73% in the first quarter of 2021. Financial stress is particularly affecting younger individuals and those approaching retirement. The number of people successfully completing debt counselling has surged, with roughly 14 times more consumers achieving this in Q2 2026 compared to the same quarter in 2016.

These individuals collectively paid R570 million to their creditors during the counselling process, money that would otherwise have circulated in the economy.