If you’ve been swiping your card more just to get through the month, you’re not alone. I’ve been a debt counsellor for over 15 years, and this year, the financial stress on South Africans is heavier than ever before.

The new Eighty20 XDS Credit Stress Report Q1 2025 confirms what I’m hearing from clients every day: people are drowning in debt, and even middle- to high-income earners are feeling the heat.

Let’s break it down, simply and clearly, so you understand exactly what’s happening and why.

Debt in 2025: How Much Worse Is It?

Loan Balances:

• 📅 2024: R2.43 trillion

• 📅 2025: R2.56 trillion

• 🔺 Increase: R130 billion (5.3%)

Overdue Loans (Behind on Payments):

• 📅 2024: R183 billion

• 📅 2025: R208 billion

• 🔺 Increase: R25 billion (13.7%)

Number of Accounts in Arrears:

• 📅 2024: 17.6 million

• 📅 2025: 17.97 million

• 🔺 370,000 more accounts now behind

That’s nearly 18 million loans where people are falling behind. This isn’t just numbers. This is rent, car payments, groceries, and school fees people can’t keep up with.

Homeowners Are Not Safe Either

Many assume that if you own a house, you’re doing okay financially. But even this group is under pressure.

Overdue Home Loans:

• 📅 2024: R9.3 billion

• 📅 2025: R11.3 billion

• 🔺 That’s up by 21.5%

More people are missing their bond repayments — often to keep the lights on or food in the fridge. And many are ashamed to speak up until it’s too late.

Credit Cards & Store Accounts: The Danger Zone

Using a credit card or a store account to buy essentials might seem like a quick fix, but it comes with high interest rates.

Credit Card Debt:

• R250 billion in 2025 — up 8.7% from 2024

Retail Credit (like clothing/furniture accounts):

• Up 8.3% year-on-year

We’re borrowing to survive — and then borrowing more to cover those debts. It’s a never-ending loop.

Who’s Feeling It the Most?

Everyday South Africans (Mass Market)

• 👤 325,000 new credit users in 2025

• ❌ 53% are already in default (missed payments)

Many of these are first-time credit users — and they’ve already fallen behind. That tells us the problem is bigger than “bad spending.” It’s survival.

Middle-Class and Professionals

• 👥 1 million new loans

• 📈 3.4% increase in missed payments

Even those with stable jobs and degrees are starting to default. Why? Because their expenses are rising faster than their salaries.

Big Picture: What’s Making This Worse?

This isn’t just about your grocery bill.

1. Trying to Keep Up

Social media plays a huge role. Everyone’s posting new cars, fancy holidays, and designer outfits. It creates pressure to match that lifestyle — even if it means using credit.

2. Interest Rates

Yes, the Reserve Bank cut the repo rate to 7.25%, hoping to give relief. But when you’re already deep in debt, lower rates don’t magically solve the problem.

3. Global Politics

Believe it or not, international events affect us. The recent U.S. election of Donald Trump sparked global market jitters. When the U.S. sneezes, we often catch a cold. New tariffs, trade restrictions, and instability cause our currency to weaken — and prices here go up.

4. Local Growth Is Slowing

South Africa’s growth forecast dropped from 1.8% to 1.5%. That means fewer jobs, slower salary increases, and higher living costs.

What Can You Do Right Now?

1. Face the Numbers
   Make a simple list: income in, expenses out. Know where your money is going.

2. Stop Borrowing to Buy Time
   Using credit to survive can trap you in a deeper cycle.

3. Speak to Someone
   A registered debt counsellor can help reduce your monthly payments and protect your assets — legally. It’s not shameful. It’s smart.

My Honest Advice

I get it. You’re not reckless — you’re under pressure.

You didn’t wake up and choose debt. Life got more expensive, faster than your income could catch up. But doing nothing only makes things worse.

Let’s stop pretending everything is fine. Let’s talk openly, act wisely, and take back control.

📞We are here to help.

Casper le Grange is one of South Africa’s most respected and awarded Debt Counsellors. With over 15 years of experience in helping thousands of South Africans reclaim control of their finances, he is known for his deep industry knowledge, compassionate client approach, and unwavering commitment to ethical debt relief.

Casper is the Eastern Cape representative of the Debt Counsellors Association of South Africa (DCASA) and played a key role in revising the national Task Team Agreement 2.0, which will set new standards for fair and effective debt counselling practices.

In 2024, he received The One | Debt Review Awards Significant Contribution to the Industry Award, recognizing his lasting impact on the sector. Under his leadership, DCGsa (Debt Counselling Group SA) has consistently ranked among the Top 10 debt counselling firms in the country for nearly a decade — winning first place in 2021.

His expertise has been featured on Link FM, Kingfisher FM, RSG, and in leading publications like News24, and magazines. Beyond media, Casper regularly speaks at national industry events and forums, and he actively champions financial literacy in schools, workplaces, and communities.

Casper’s work is grounded in strong Christian values and a deep belief that every South African deserves a second chance at financial freedom.

Go and read: Eighty20 and Xpert Decision Systems (XDS)  2025 Q1 Credit Stress Report! It dives into how South Africans are managing credit and highlights the major economic shifts that shaped the first quarter.