Compared to men, women are 10% more stressed about finances in South Africa, with almost four out of five women admitting they suffer from financial stress. This is according to the recent findings by DebtBusters through its third annual Money Stress Tracker survey.
Those affected revealed financial stress level is affecting their home and work lives, as well as their health.
Benay Sager, executive head of DebtBusters, said that the levels of financial stress of respondents was 70% in 2022, 78% in 2023 and 75% in 2024.
“Of the 75% of people who said they felt financially stressed, 93% said this was negatively affecting their home life, 76% their work life, and 74% their health,” he said.
Consumers struggle to cope with the depressed South African social economy, characterised by rising unemployment, the high cost of living and frequent hikes in energy, fuel and electricity prices.
“Concerns about interest rate increases declined by 22%, between 2023 and 2024. The survey reveals that most people’s main money concerns are short-term, with distress about running out of money before the end of the month and struggling to pay off remaining debt most dominant.”
A major concern is that 68% of respondents said they were spending more than 30% of their after-tax income on debt repayments.
Sager said of these, 53% of respondents use more than 40% of their pay to service debt.
“Generally, consumers are advised not to spend more than 30% of their take-home pay on debt repayment – 40% at most,” said Sager.
He said 60% of older people, aged 45 years and older, also in the middle class financial category, have unsustainable levels of debt.
The same is true of people taking home R20 000 a month and more.
“The research reveals that older people with higher incomes are under the greatest debt repayment pressure, yet are most resistant to seeking help. They cite not knowing who to trust as the main reason for inaction.
“By contrast, 54% of younger consumers show intent in dealing with money stress, although are not always sure of available options. Those under 35 years say they are embarrassed, while those older tend to procrastinate,” said Sager.
