Q3 2025 Debt Index

Despite improved sentiment, consumers still face financial strain

• Interest rate reductions have helped, but income growth not keeping pace with inflation
• Consumers using unsecured credit to make up the shortfall

Download the full Q3 2025 Debt Index here.

Although consumer sentiment continues to improve in 2025, consumers are still under severe financial strain.

This is revealed in DebtBusters’ Q3 2025 Debt Index, a quarterly evaluation of debt counselling applications.

Executive head of DebtBusters, Benay Sager*, says that successive interest rate and petrol price reductions have helped consumers better deal with debt, however, finances are still seriously strained.

Sager explains that over the past nine years, income growth has not kept up with significant cost increases, and consumers are using short-term unsecured credit and personal loans to make up the shortfall.

“Of those who apply for debt counselling, 95% have a personal loan, and 57% have a payday loan. A further 22% use overdraft facilities regularly. Vehicle debt also seems to be increasing and is now making up a substantial portion of the incoming client cohort debt.”

Notably, demand for online debt management grew by 47% compared to the same period last year.

Other findings from the Q3 2025 Debt Index are that, compared to 2016, consumers who applied for debt counselling had:

• 48% less purchasing power. Electricity costs 165% more than nine years ago, and the petrol price is 80% higher, both contributing to cumulative inflation of 51%. Over the same period, nominal net incomes have only increased by 3%.
• A high debt-service burden. Before coming to debt counselling, consumers were spending 70% of their net income to repay debt. This is the highest since 2017. People taking home R35,000 a month use 78% of their income to repay debt, and their total debt-to-net-income ratio is 189%. The most vulnerable consumers, who earn R5,000 or less a month, use 92% of their income for debt repayments. These ratios are at their highest-ever levels.
• Unsustainably high levels of debt among top earners. Average unsecured debt levels were 32% higher than nine years ago, but are lower than the same period last year. For people taking home R35,000 or more, unsecured debt levels were 61% higher. While this is only slightly higher than the cumulative CPI growth since 2016, without meaningful salary increases, these consumers need to supplement their income with unsecured credit.

Sager says that debt counsellors can renegotiate interest rates on unsecured debt from 22.3% to ~2.3% per annum, which allows consumers to repay their most expensive debt faster. Vehicle debt and balloon payments can be paid over a meaningful period by getting the average interest rate of 14.3% down to a more manageable level.

“Debt counselling in South Africa works, and benefits both consumers and creditors. Since 2016, the number of people who have successfully completed debt counselling has increased 12-fold. In Q3 2025 alone, consumers who received their clearance certificates paid back over R540 million worth of debt.”

To help South Africans deal with money stress, in September 2025 DebtBusters introduced MyMoneySaver, which helps consumers save on everyday items such as groceries, retail purchases, entertainment, and dining out.

*At the 2025 Debt Review Awards, Benay Sager was recognised for his significant contribution to the debt review industry, winning the award for that category. The Debt Review Awards is an industry-wide programme open to any participant registered with the National Credit Regulator. Payment distribution agencies, more than 1,700 debt counsellors and over 9,000 registered credit providers participate and share their feedback on the performance of their peers through an online peer-review system.