- More than 60% of South Africans run out of money before month end, and many say their money is gone in the first week.
- Debt expert Sebastien Alexanderson says the first five days after payday shape the whole month, as credit fills the gap when cash runs out.
Many South Africans are not moving forward when payday comes. They are just trying to catch up.
This is according to National Debt Advisors, where Head Sebastien Alexanderson says millions of people feel a short burst of relief when their salary lands, but it does not last.
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Alexanderson says the money is often already spoken for before it reaches a bank account. Rent, food, transport and other basics take most of it straight away. After that, very little is left.
He says what people feel on payday is not real financial stability. It is only a short break from the stress.
"What people experience on payday is not financial stability. It is temporary relief," says Alexanderson.
He says many people think they can breathe again when they get paid, but the pressure returns within days. Once the basics are covered, other small costs start to creep in.
Alexanderson calls this "relief spending". He says people who have spent a full month under money pressure often want to feel normal again when cash arrives.
"We call it relief spending. You have spent the entire month stressed about money. When you finally have some, you want to feel normal again," Alexanderson says.
He says the timing matters most. According to him, the first five days after payday decide how the rest of the month will feel.
"That first five days after payday determine how the rest of the month will feel."
When the money runs out, many people turn to credit. Alexanderson says credit has become the bridge between income and everyday life, but it comes at a high price.
"Credit has become the bridge between people's income and their reality. The problem is that it is a very expensive bridge," he says.
He says this creates a cycle where people borrow just to stay afloat. Then the next month starts with even more pressure.
Alexanderson says people can start breaking the cycle by tracking every rand for one month, controlling spending in the first five days after payday, paying essentials first, cutting back on costly short term credit, moving debt to lower interest where possible, building a small emergency buffer and getting help early when debt becomes too much.
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"This is not a personal failure. It is a cycle that people have been pulled into," Alexanderson says.
"But with the right steps and support, it can be broken."
