Subscriptions gone, eating out cut, but South Africans still can’t cope

South Africans are still grappling with financial difficulties, despite cutting back on discretionary spending and paying down debt. A recent consumer study found that 39% of respondents expected to miss at least one bill or loan repayment. Inflation is a top concern for 79% of respondents, with only 37% believing their income keeps up with rising prices.

As a result, more than half of consumers have reduced discretionary spending, cancelled subscriptions, and cut or cancelled digital services. Financial adviser Byron Geddes describes this as the "financial triage effect," where families prioritize essential expenses like housing, groceries, and debt repayments over discretionary items.

This shift has led to some consumers cutting retirement savings, using more available credit, and dipping into retirement savings. Despite these efforts, many consumers are still feeling the strain, with cautionary spending and cautious credit behavior becoming the norm. Financial professionals suggest that while cutting small daily expenses is important, big decisions and big-ticket items often have a greater impact on long-term financial stability.