South Africans Experience Reduced Financial Stress, but Challenges Persist

Johannesburg – Currently, South Africans are experiencing a decrease in financial anxiety compared to the previous two years, with stress levels resembling those of 2022.

However, many individuals still face considerable financial strain.

This information is derived from the fourth annual DebtBusters Money-Stress Tracker, which collected responses from over 27,000 participants in May and June.

This positions it as one of the most extensive online surveys evaluating the impact of financial stress on the lives of South Africans.

Financial stress and its ripple effect

The 2025 survey highlighted that:

• 70% of respondents reported experiencing financial stress, down from 78% in 2023 and 75% in 2024. While financial anxiety is decreasing, it still has a substantial influence on everyday life. Among those stressed, 91% indicated that it impacted their home life, 73% their workplace, and 73% their health.

• Women bear a disproportionate share of financial stress. Nearly three-quarters of female respondents indicated feeling financially stressed. Women are about 10% more stressed overall and 20% more regarding work, home, and health compared to men. Nonetheless, stress levels have dropped for both genders by 5% to 15% across various life areas since 2024. This decline is attributed to a reduction in national challenges like loadshedding, lower inflation, and improved financial management, allowing individuals to think beyond mere survival.

Psychologist Andrea Kellerman, associated with the Money-Stress Tracker, asserts that even a modest 5% reduction in stress (from 75% to 70% over the past year) can lead to better sleep and coping abilities. This underscores how minor improvements can significantly enhance resilience and outlook.

Key financial concerns

Those feeling financially stressed primarily worry about short-term issues, particularly the risk of depleting their funds before the month concludes and challenges in meeting monthly debt obligations.

While the effects of climbing interest rates remain evident, their influence has diminished compared to 2023 and 2024.

Demographic variations

• Age: Individuals aged 35 to 44 report the highest financial stress levels. Concerns about retirement have increased among those aged 45 and older compared to 2024, indicating a shift towards considering long-term financial matters.

• Income: Lower-income demographics are particularly anxious about the ramifications of interest rate increases and unexpected costs. Rising electricity rates are a prevalent concern across all income brackets, but retirement anxieties are markedly higher among higher-income earners. Those earning over R20,000 monthly often carry unsustainable debt levels, qualifying for and taking on more credit than they can effectively manage.

• Region: Western Cape residents report the highest levels of financial anxiety, surpassing Gauteng, which was the most stressed region in 2024. In the Western Cape, fears surrounding unexpected expenses and retirement are prominent. Smaller provinces like the Northern Cape, Limpopo, and Mpumalanga have witnessed substantial surges in concerns regarding electricity costs and interest rates.

Borrowing and debt repayment trends

• 63% of respondents allocate 30% or more of their after-tax income toward debt repayment, with 48% spending over 40%—a level deemed unsustainable.

• Those aged 45 and above are under the most significant strain regarding debt repayment, with 60% experiencing unsustainable debt burdens.

• Individuals earning over R20,000 monthly likewise feel considerable pressure in repaying their debts.

Addressing money stress

• 37% of respondents indicated they are actively working to reduce their monthly expenses, down from 43% in 2022, hinting at potential savings fatigue.

• An increasing number of consumers, around 35%, are on the lookout for higher-paying or more suitable jobs to manage their finances better, up from 26% in 2022.

• Younger consumers are particularly proactive in budgeting and are nearly four times more likely to seek better employment, showing a 56% greater intention to handle financial stress compared to those over 35.

• Respondents discussing their strategies for managing money stress indicated a shift in coping mechanisms. In 2022 and 2023, the focus was primarily on improving job situations or launching side hustles, while in 2024, debt counseling gained preference as a method to mitigate financial stress. Currently, there is a growing emphasis on entrepreneurial endeavors, diverse income streams, and financial self-sufficiency, reflecting a trend toward independence and varied earnings.

Benay Sager, executive head of DebtBusters, notes that despite the slight overall drop in stress levels, over 90% of South Africans with unsustainable debt are not actively pursuing professional help, such as debt counseling.

“This indicates a persistent need for stress-management programs, financial education, and awareness initiatives to address stigma and promote early intervention,” Sager stated.

“It also highlights the urgency for innovative approaches to managing financial stress, especially those that assist consumers in optimizing their resources.”