{
  "id": 530295,
  "title": "'More than one loan': Why more South Africans are turning to credit to make ends meet",
  "url": "https://urgent.news/2026/08/11/more-than-one-loan-why-more-south-africans-are-turning-to-credit-to",
  "topic": "culture",
  "section": "Culture",
  "published": "2026-08-11T04:00:00.000Z",
  "source": {
    "name": "IOL",
    "slug": "iol",
    "url": "https://iol.co.za/mercury/news/2026-08-11-more-than-one-loan-why-more-south-africans-are-turning-to-credit-to-make-ends-meet/"
  },
  "original_language": "en",
  "account": "South African households are grappling with an increasing financial burden as the cost of living continues to rise. Inflation reached a peak of 5% in June, driven by surging transport costs, housing, and utilities. Meanwhile, the Competition Commission's Cost of Living Report highlighted that essential services, such as electricity and water, have experienced dramatic price hikes, with electricity prices up 85% and water prices 68% since 2020. These steep price increases have strained household finances, prompting more South Africans to turn to credit for financial stability.\n\nThe Credit Association of South Africa warns that the problem extends beyond large loans, as multiple smaller credit commitments, including store accounts and personal loans, are also contributing to the financial strain. According to the Old Mutual Savings & Investment Monitor, the number of working South Africans with personal loans increased from 54% in 2025 to 64% in 2026. Additionally, the report expresses concerns about the rise in borrowing from informal lenders, with loans from mashonisas or loan sharks increasing from 12% to 19%.\n\nConsumers are also relying on their support networks more than ever, with 28% turning to family and friends, and 16% seeking assistance from stokvels (informal savings and credit groups). FNB Consumer Education Operations Manager Pearl Cele advises consumers to carefully consider the costs associated with credit, including interest and potential fees, and to borrow responsibly based on their needs.",
  "summary": "South African households are grappling with a financial squeeze as rising living costs push consumers to rely increasingly on credit",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "IOL",
        "title": "'More than one loan': Why more South Africans are turning to credit to make ends meet",
        "url": "https://urgent.news/2026/08/10/more-than-one-loan-why-more-south-africans-are-turning-to-credit-to",
        "published": "2026-08-10T05:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}