South Africa high earners face rising debt pressure

High-income earners in South Africa are facing intense debt pressure. According to the DebtBusters Q2 2026 Debt Index, consumers earning more than R50,000 per month now require 103% of their income to service debt repayments.

The total debt-to-annual-net-income ratio for this high-earning group has reached 307%. This surge is largely attributed to unsecured debt, which has increased by 84% since 2021, far outstripping the 29% cumulative inflation rate.

Benay Sager, executive head of DebtBusters, noted that credit risk is becoming concentrated among a smaller group of consumers. While the volume of loans has decreased, the average size of unsecured loans has increased.

Financial strain is further exacerbated by rising essential costs. Since 2021, petrol prices have risen by 52% and electricity tariffs have increased by 101%. While total debt among lower-income earners has declined by up to 23%, experts suggest this may reflect reduced access to credit rather than improved financial stability.