South Africa’s highest earners are facing growing debt pressure, with people earning more than R50,000 a month now needing 103% of their monthly income to service their debt obligations.
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South Africa’s highest earners are supposed to have the biggest financial cushions. Instead, for a growing number of consumers taking home more than R50,000 a month, a large salary comes with an even larger debt burden.
According to the latest DebtBusters Q2 2026 Debt Index, consumers in this income bracket now need 103% of their monthly income to service their debt.
Their total debt is now equivalent to 307% of their annual net income, with unsecured debt among these consumers 84% higher than it was in 2021.
Executive head of DebtBusters Benay Sager said the average size of unsecured loans had increased significantly over the past decade, even as the number of loans declined.
“Over the past decade the average unsecured loan size has increased, while the volume has decreased. This means larger unsecured loans are being granted to fewer consumers, concentrating credit risk within an ever-smaller group,” Sager said.
This came as lending to lower-income consumers started to decline, particularly in the years following the pandemic. The data shows that banks remain the main source of credit, accounting for about 65% of lending, while unsecured and micro lenders have also increased their share in recent years.
The DebtBusters data shows that higher-income consumers are carrying a different mix of debt from lower-income groups.
For those earning more than R50,000 a month, 59% of their debt is asset-based. This includes vehicle finance and home loans. The remaining debt is unsecured and includes personal loans, credit cards, overdrafts and retail accounts.
"South African consumers continue to face significant financial pressure, with debt burdens elevated and income growth failing to keep pace with the cost of living," Sager said.
While income growth has broadly kept pace with CPI growth of 29% since 2021, DebtBusters said individual cost-of-living increases have been higher.
Petrol prices have increased by 52% since 2021, while electricity tariffs have risen by 101%. This compares with average income growth of 23% over the same period.
These higher costs have put pressure on household budgets, with consumers having to spend more on basic expenses while also meeting their existing debt repayments.
DebtBusters said this pressure has contributed to consumers increasingly turning to unsecured credit to bridge the gap.
"Against this backdrop, consumers have increasingly turned to unsecured credit to bridge the gap: 96% of new applicants have a personal loan at the time of application, while 63% now carry a one-month (payday) loan – a record," the report notes.
"The average number of credit agreements per new applicant has reached 8.7, its highest level since 2016, pointing to a renewed wave of multi-lender borrowing."
The pressure is particularly evident among consumers earning between R10,000 and R20,000 a month.
"For those earning R10,000 to R20,000 – the backbone of South Africa’s working population – almost a third of disposable income is spent on food, leaving very little for insurance, savings, or emergencies".
"The prevalence of personal loans and one-month loan accounts indicates the severe cash flow pressure consumers are under".
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