Over-indebtedness rises as more people in SA struggle to keep up with repayments

More South Africans are falling into debt as they struggle to meet loan repayments, according to a recent Credit Stress Report released on September 10, 2026. The report, published by Eighty20 and Xpert Decision Systems, highlights the growing financial pressure on households grappling with the high cost of living and limited disposable incomes.

The South African economy contracted more than expected in the second quarter of 2026, with inflation rising to 4.5% year-on-year due to increasing petrol and diesel prices. In response, the South African Reserve Bank raised the repo rate by 25 basis points to 7.0%, while retail sales grew by 2.6% year-on-year. Despite this, the proportion of loans in arrears eased slightly to 34.0%.

Total open loans increased by 690,000 (1.2%) to 56.3 million, while outstanding balances grew by R16 billion (0.6%) to R2.7 trillion. Over-indebtedness continued to rise, with 41.8% of credit-active South Africans defaulting on one or more loans, with the largest proportion of loans in arrears since the third quarter of 2024. The report also noted that women make up 58% of credit-active consumers, but hold only 46% of the total credit current balance.

Women are particularly overrepresented in retail loans, accounting for 62% of exposure in this lower-value, unsecured product. Despite the ongoing conflict in the Middle East, which poses a significant risk to future economic outlook, the gender gap in credit stress has narrowed in recent quarters.