TransUnion Report: 39% of South Africans Expect to Miss Debt Repayments
South African households are facing a severe financial squeeze as the cost of living continues to outpace income growth. According to TransUnion’s Q2 2026 Consumer Pulse Study, nearly four in ten South Africans (39%) expect to miss at least one bill or loan repayment in the near term.
The report paints a clear picture of a consumer environment marked by persistent financial strain, shrinking affordability margins, and cautious credit behavior. While access to credit remains a vital lifeline for millions, rising borrowing costs and stricter lending criteria are changing how households borrow, spend, and manage debt.
Cost of Living Outpaces Income Growth
The primary driver behind the rising default risk is simple: essential expenses are rising faster than household earnings.
Inflation Pressure: A staggering 79% of South Africans rank inflation among their top three household financial concerns. Rising prices for everyday essentials—such as groceries, electricity, and fuel—quickly consume any income gains.
Income Lag: Only 37% of consumers feel their income is keeping up with inflation, while 41% explicitly disagree.
Softening Optimism: Financial optimism dropped to 66% (down from 71% a year prior), while pessimism rose to 19%.
"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."
— Ayesha Hatea, Director of Research and Consulting at TransUnion South Africa.
Cautious Credit Behaviour and Application Abandonment
Despite severe financial strain, credit access remains a fundamental pillar of household financial strategy. An overwhelming 92% of South Africans view access to credit as essential to achieving their financial goals.
However, viewing credit as important does not mean consumers are taking on debt recklessly.
Abandoning Applications: 45% of consumers abandoned a credit or refinancing application after starting it.
Key Barriers: High borrowing costs, fear of rejection due to employment status, and concerns over existing credit history caused many applicants to pull back.
Selective Borrowing: Only 36% of consumers plan to apply for new credit or refinancing in the coming year, reflecting a highly cautious approach to taking on new debt obligations.
Shift Toward Short-Term Credit and Digital Banking
As consumers back away from long-term, high-value loans (such as home mortgages or vehicle finance), demand is shifting toward immediate liquidity solutions:
Short-Term Loans & Credit Cards: Borrowers are prioritizing personal loans, credit cards, and Buy Now Pay Later (BNPL) services to handle emergency cash flow gaps.
Digital Banking & Visibility: Consumers are increasingly turning to digital banking apps and credit monitoring tools. Having clear digital visibility over their credit reports helps households understand where they stand before committing to new debt.
How to Protect Your Financial Profile When Money Is Tight
If you are among the 39% of South Africans worried about missing an upcoming account or loan payment, taking proactive steps early can protect your credit score from long-term damage:
Prioritize Your Debts: Separate essential living costs (groceries, housing, utilities) from non-essential debt. Pay secured loans (like car or home loans) first to safeguard your assets.
Communicate with Creditors Before Defaulting: Never ignore missed payments. Contact your credit providers before your due date to request temporary payment arrangements or payment holidays.
Check Your Credit Report Regularly: Monitor your credit score for inaccuracies, outdated listings, or unauthorized accounts. You are entitled to a free annual credit report from registered bureaus like TransUnion.
Know Your Legal Rights: If debt has become unmanageable, the National Credit Act (NCA) provides legal avenues—such as credit clearance, debt restructuring, or debt review—to protect you from asset repossession and legal action.
Need Help Managing Your Debt or Clearing Your Credit Profile?
If cost-of-living pressures are threatening your financial stability, you don't have to navigate it alone. Knowing your rights under the National Credit Act is the first step toward true financial relief.
Whether you need assistance removing adverse credit listings, negotiating with creditors, or understanding your credit report, Libertine Debt Consultants is here to help.
