Having a job and earning a regular salary was once seen as a sign of financial stability, but for a growing number of South Africans, a monthly income is no longer enough to cover the rising cost of living.
Despite annual consumer inflation reaching 4.4% in August 2026, essential expenses continue to put pressure on household budgets, leaving some employed consumers increasingly reliant on credit just to get through the month.
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Rising costs leave households under pressureElectricity and transport are among the expenses adding to the squeeze on household finances.
Eskom direct customers faced an electricity price increase of 8.76% in April, while municipal electricity customers have been paying 9.01% more since July.
Meanwhile, October’s fuel price increases pushed inland petrol prices above R30 a litre for the first time, adding further pressure to transport budgets.
These increases come on top of household commitments such as rent or home-loan repayments, groceries, school fees, insurance and existing credit repayments.
Even relatively small increases across several essential expenses can leave a household struggling to balance its budget.
The problem is compounded when consumers have little money left over at the end of the month to deal with unexpected costs.
Why more South Africans are turning to credit
As household budgets become increasingly stretched, some consumers are borrowing not to cover emergencies or major purchases, but simply to make it to payday.
The shortage of emergency savings makes the situation worse.
Recent surveys found that only 29% of adults had enough savings to cover three months of expenses.
Without an adequate financial buffer, an unexpected bill or temporary loss of income can force consumers to rely on credit, potentially making an already difficult situation worse.
When debt counselling could help
Debt counselling is a regulated process designed to help over-indebted consumers restructure their repayments into a more manageable arrangement.
The process aims to help consumers repay their debts while allowing for reasonable living expenses and, where applicable, protecting assets.
Payments are generally consolidated into a single monthly amount, which is distributed to creditors through a payment distribution agency.
For households finding that a regular salary no longer covers their essential expenses, the message is clear: financial difficulty does not automatically mean poor money management, and getting help early could prevent the situation from deteriorating further.
Financial reality
René Moonsamy, chairperson of the National Debt Counselling Association (NDCA), says headline inflation figures do not necessarily reflect the financial reality facing households.
“Although inflation seems to be heading in the right direction, it’s important to consider two things,” Moonsamy explains.
“Firstly, a lower headline inflation rate doesn’t mean that prices are coming down, just that they are increasing more slowly, or the costs of some of the goods and services in the inflation basket have decreased.
“Secondly, households must still pay for essentials that are increasing way beyond the average inflation rate, with salaries that have only gone up by 4.1% in the year to May 2026.”
She added that essential expenses are rising faster than the average inflation rate, while salaries have not necessarily kept pace.