The South African Reserve Bank Sarb decided this week to leave the repo rate unchanged. For economists, it is mostly an academic discussion, but for the countrys cash-strapped consumers, it was bad news greeted with dismay.
The human cost behind South Africas consumer credit crunch is huge. South Africans are heading deeper into 2026 carrying a heavy debt load, due to a deadly combination of ever-escalating living costs, stagnant wages and high interest rates that forced millions of households to rely on credit, including expensive, short-term loans, to cover essential expenses like food, fuel and electricity.
Neil Roets, CEO of Debt Rescue, says households entered the year already weighed down by accumulated debt, back-to-school costs and essential living expenses that continue to increase faster than their incomes can stretch.
