South African consumers are spending two thirds of their take-home pay servicing debt - while using credit as a lifeline each month.
DebtBusters’ second annual Money Stress Tracker says South Africa's middle class has unsustainable debt levels.
Middle class South Africans are being forced to incur more debt to get through the month.
Middle class South Africans are seeing their spending power dwindle as costs continue to rise.
New data shows that South Africa's middle class are coming under severe strain.
Annual consumer inflation reached a 13-year high in South Africa, increasing to 7,8% in July, StatsSA data showed, leaving consumers in a vulnerable position financially amid the soaring cost of living.
South Africans are forking out more money to service big loans that continue to put them in debt.
Consumers in South Africa need to spend around 63% of their take-home pay to service their debt, data from debt counsellor, DebtBusters shows.
DebtBusters says that the combined pressures of increasing interest rates, rising inflation, and a diminished ability to borrow have led more consumers to pro-actively seek help.
South Africans say high levels of financial stress is negatively impacting their health, and they are increasingly worried about not being able to pay all of their expenses at the end of the month.