By Jessie Taylor
For many South Africans, managing personal finances is a daily challenge shaped by debt pressure, high living costs and weak income growth. But even in a challenging economic climate, there are reasons for optimism and practical steps individuals can take to build stronger financial habits and make saving a realistic goal.
Debt and saving patterns
Recent findings show that saving money remains difficult for a large proportion of South Africans. According to the 2025 1Life Generational Debt Survey, only about 41% of South Africans manage to save each month, while another 36% say they do not earn enough to save at all. This paints a picture of households squeezed between rising costs and limited disposable income, many of whom rely on debt to keep afloat.
Household debt levels add further context to this picture. A DebtBusters Q2 2025 Debt Index revealed that the debt-to-annual-income ratio was at its highest levels since 2017, as consumers increasingly turn to credit to bridge the gap between stagnant incomes and rising living costs. Personal loans, payday loans and overdraft facilities have become common, reflecting how credit is used not just for investment but for everyday expenses.
More strikingly, surveys show that many households are spending well above advisable limits on debt repayments. DebtBusters’ Money Stress Tracker found that nearly 48% of households spend more than 40% of their disposable income on debt, a level considered unsustainable. In fact, 63% of households were found to be in the “danger zone” of debt stress, with some consumers using 70-92% of their net income to service debt, depending on earnings and loan structures.
These figures provide clear evidence of why saving has been out of reach for many. When credit costs absorb such a large share of take-home pay, discretionary saving is constrained. However, these statistics also highlight the opportunity for targeted financial planning and gradual behaviour change.
Why saving matters and where opportunities lie
Despite low overall savings rates, there are reasons for measured optimism heading into 2026. The South African Reserve Bank’s data shows that the household saving ratio – though negative in some quarters – is tracked systematically, offering a baseline from which policy and individual behaviour can improve.
On the macroeconomic front, recent budget projections and fiscal adjustments indicate stabilisation of debt levels and government commitment to fiscal sustainability. National Treasury forecasts show debt-to-GDP stabilising and primary budget surpluses growing over the medium term, which can support lower interest rates and less pressure on credit costs. These broader trends influence loan rates, inflation expectations and consumer confidence — all key factors in personal financial planning.
While the economic context remains challenging, such developments suggest that financing costs may moderate and that households could see incremental relief through policy effects and interest rate movements.
Financial literacy underpins all effective saving behaviour. Understanding compound interest, debt costs, credit scores and basic investment principles empowers people to make informed choices about credit use and saving priorities. Long-term saving also benefits from diversified thinking. Even while debt is being reduced, individuals may consider low-risk savings products, retirement contributions or structured saving plans that balance access with growth potential.
South Africans face a challenging but not impossible journey towards improved financial fitness. Saving in the current economic climate requires realism, discipline and a clear strategy, but it is not beyond reach. While many households today allocate significant portions of income to debt, opportunities exist to recalibrate spending, prioritise savings and leverage more favourable economic conditions as they evolve.
How your food deliveries and Uber drives could help you buy a home
With a more favourable lending environment expected in 2026 and relative stability in the rand, many South Africans are considering whether home ownership is finally within reach. For millions, however, the challenge is not affordability but access. An estimated 16 million South Africans remain excluded from the formal credit system due to limited or non-traditional credit histories.
To address this gap, lenders are increasingly turning to alternative data to assess creditworthiness more holistically. Beyond income and traditional credit scores, factors such as consistent cellphone payments, e-commerce activity and platform-based work histories are being used to build a fuller financial profile. According to BetterBond, this approach is particularly valuable for the self-employed and gig-economy workers who may lack payslips or long credit records.
Mobile phone data has emerged as one of the most useful indicators. Regular airtime and data purchases over a sustained period can demonstrate financial discipline and reliability, traits closely linked to loan repayment behaviour. When analysed alongside traditional credit data and with proper consent, this information can strengthen a bond application.
Behavioural indicators from platform work are also gaining traction. High Uber ratings for rides or food deliveries, for example, signal consistency, reliability and professionalism. While not a replacement for financial data, these metrics help lenders better understand how informal earners manage responsibility and income stability.
Sources: DailyInvestor | DFA | BusinessTech | DebtBusters | TradingEconomics | Stats SA. | South African Government
