By Rorisang Modiba
- Debt experts say families are using loans and credit just to buy food and pay bills, leaving them trapped in more debt.
- Young people are worst hit, with most earning under R6,000 a month and many skipping meals to survive.
For many South Africans, December will not be a time of plenty. Families are already struggling, and rising costs are making things worse.
The Department of Petroleum and Mineral Resources announced another petrol price hike this week. Petrol went up by two cents and eight cents a litre, while diesel went down by 10 cents. But fuel is still very costly.
Neil Roets from Debt Rescue said: “People are in dire need of some real financial relief.”
Economists say families are spending less because they simply don’t have money. FNB’s Mamello Matikinca-Ngwenya said high interest rates and poor job creation are leaving households worse off. Food keeps getting more expensive, hitting poor and working-class families hardest, The Citizen reported.
Young people are in the biggest trouble. The Zaka Index shows 82% of 18–35-year-olds earn less than R6,000 a month. Eight in ten said they often skip meals or delay payments just to make it through the month.
But older people are also struggling. Household debt in South Africa has risen to 70% of income, the highest level since 2017. Roets said fuel and electricity costs, plus years of weak incomes, are forcing people into deeper debt.
At the same time, big banks are making profits. PwC found that major banks are still growing, even while ordinary South Africans sink further into debt.
Pictured above: Grocery shopping.
Image source: Pexels
