Report reveals 39% of South Africans say they will skip loan repayments
· Citizen
South Africans remain under severe financial pressure as the high cost of living persists, with TransUnion’s second quarter 2026 Consumer Pulse Study revealing that nearly four in 10 people expect to miss at least one bill or loan repayment.
TransUnion’s quarterly Consumer Pulse Study measures how shifting consumer attitudes impact household income, spending and economic participation across the country. TransUnion is one of the major global consumer credit reporting agencies.
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The report found that persistently high inflation continues to reshape how households spend, borrow and save, driving more cautious financial behaviour.
South Africans are just surviving
Ayesha Hatea, director of research and consulting at TransUnion South Africa, said the findings point to a consumer environment marked less by recovery and more by ongoing adjustment. While many households remain financially active, their ability to absorb additional pressure is narrowing, with affordability constraints increasingly shaping everyday decisions.
“Consumers are still managing, but the margin for error is shrinking. Even modest increases in essential costs are forcing difficult trade-offs, which is reflected in lower confidence and more cautious credit behaviour.”
The report suggests that household finances remain under pressure, with mixed signals pointing to continued strain. 43% of South Africans said their household finances were better than planned, down slightly from 44% in Q2 2025. At the same time, 40% said their finances were worse than planned, pointing to persistent pressure rather than a clear recovery trend.
Households become pessimistic
The report that financial optimism declined to 66%, down from 71% in Q2 2025, while pessimism increased to 19% from 15%.
Income expectations also weakened, with 70% of consumers expecting their household income to increase over the next 12 months, compared to 75% a year ago.
Only 37% of the respondents believed their income was keeping up with inflation, while 41% disagreed.
“Inflation for everyday goods, including groceries and fuel, remained the dominant household concern, ranking among the top three worries for 79% of respondents,” noted TransUnion.
“This imbalance is increasingly affecting liquidity, which underscores the extent to which cost pressure continues to affect monthly cash flow and raise the risk of missed payments.”
Inflation a persists pressure
Hatea said inflation remains the biggest pressure point for many people in the country.
“Inflation remains the single biggest pressure point for households. Even where incomes are rising, essential costs quickly absorb that relief. This makes budgeting discipline and financial awareness more important, because households need to know where they can adjust when pressure rises.”
The report also noted that households are cutting discretionary spend in response to rising inflation, including eating out, travelling and entertainment.
53% of respondents said they had to cut back over the past three months, while 28% cancelled subscriptions or memberships, and 24% cancelled or reduced digital services.
Debt and savings
When it comes to debt and savings, the findings are mixed.
At least 32% of respondents said they had paid down debt faster, 27% reported to have saved more in an emergency fund or stokvel, and 20% saved more for retirement.
In the same breath, 14% cut back on retirement savings, 14% increased their use of available credit, and 13% used their retirement savings.
TransUnion found that credit remains a critical financial tool, but engagement is becoming more selective. 92% of South Africans view access to credit and lending products as important to achieving their financial goals, unchanged from a year ago.
Perceptions of access improved, with 45% believing they have sufficient access to credit, up from 38% in Q2 2025. Around half of consumers believe they would be approved if they applied.
Credit demand
Hatea said there is still credit demand among respondents, but people have become selective in which obligations to take.
“Credit demand has not disappeared, but consumers are becoming more selective about the obligations they take on. For many households, access is not only about whether credit is available. It is also about whether the cost, repayment terms and approval process feel manageable.”
She noted that where consumers do plan to apply, demand is shifting toward shorter-term and more flexible products.
Among those planning new credit or refinancing activity, 34% intend to apply for a new personal loan, up from the previous quarter, while 29% plan to apply for a new credit card. A further 27% plan to use buy-now, pay-later services.
Respondents brace for impact
The report found that many of their respondents expect essential categories to remain under pressure.
Over the next three months, 37% expect their spending on bills and loans to increase, while 33% expect higher spending on medical care and services. Around 36% expect to increase contributions to retirement funds or investments, although 16% expect to decrease spending in that category.
“These findings show how carefully households are trying to manage trade-offs. Some consumers are still building buffers and paying down debt, while others are drawing on savings or credit to get through the month. That is why the broader picture is one of sustained financial adjustment rather than simple improvement,” said Hatea.
“Consumers are doing their best to stay in control in a difficult environment.”