But there is a silver lining

About 29-million consumers (individuals and companies) in South Africa are in debt.

Many economists argue that having debt can be beneficial because it enables people to improve their economic standing by providing access to housing, education, and business opportunities. It allows companies to invest in infrastructure and means of production.

But more and more South Africans are borrowing money just to survive. The National Financial Ombud Scheme says that credit is shifting "from a tool for upward mobility to a survival mechanism".

A third of South African borrowers have impaired debt: they have missed three or more debt payments, have an adverse listing on their credit report, and/or face legal action.

The number of consumers with impaired debt has increased from 9.9-million in 2022 to 10.5-million in 2025.

Good news though, is that the number of consumers with good standing debt (those who have missed two or fewer instalments) is also on the increase: 2.1-million more consumers had good standing debt in 2025 than in 2021.

Also read: The debt trap and how to get out of it

Chart produced by The Outlier in partnership with GroundUp