What South Africa’s Borrowing Trends Reveal
About Financial Resilience
As South Africans navigate an increasingly tough economic landscape, new consumer spending data from the instant loan provider Wonga South Africa reveals a mounting strain on household finances, and highlights key behavioural shifts financial advisers should take note of.
Their latest survey, conducted among nearly 4,500 adults across a wide range of income groups (from R2500 a month to over R100,000), paints a sober picture of how everyday consumers are juggling debt, essential expenses, and dwindling savings. While the cost-of-living crisis deepens, many are making difficult trade-offs to stay financially afloat.
Debt servicing overtakes essentials
Online loans and credit card repayments have become one of the largest household expenses, consuming an average of 19% of respondents’ monthly income, rising to as high as 51% among lower-income earners.
Worryingly, one in ten South Africans now spend more than they earn, while a further 8% are reporting that their income ‘barely covers’ their monthly outgoings.
For financial advisers, this signals a growing segment of clients who are operating under persistent cash flow stress, and may need help with debt restructuring, budgeting, and long-term financial planning.
Sacrifices made to preserve key cover
Despite financial strain, South Africans continue to prioritise essential protections. The majority reported cutting back on food, clothing, and entertainment to maintain payments for medical aid, insurance, school fees, and home security.
This suggests that while discretionary spending is under pressure, the perceived value of financial safety nets remains strong, an encouraging sign for the insurance and advice industry.
Savings and retirement at risk
Over half of respondents say they cannot save anything at the end of the month, and 59% are not contributing to retirement at all. Even among those aged 56–64, who typically earn more, fewer than half are saving for their retirement years.
This suggests a widening savings gap and the need for proactive client education around long-term financial resilience, especially as inflation erodes disposable income.
A changing financial landscape
“The results of our survey directly reflect the negative impact that the steep rise in the cost-of-living and the increase in inflation have had on consumers,”
says James Williams, Head of Marketing at Wonga.
“It’s critical to understand where one’s money is going, find ways to reduce spending, and use any freed-up cash to build resilience through saving or investment.”
For the financial services community, this data offers valuable insight into consumer sentiment and financial stress levels. Advisers who can bridge the gap between short-term survival and long-term planning stand to build deeper trust and deliver more holistic financial support.