South Africans Experience Reduced Financial Stress, But Challenges Persist

Johannesburg – South Africans are currently experiencing lower financial anxiety compared to the previous two years, with stress levels now resembling those of 2022.

However, considerable financial stress remains prevalent among many individuals.

This perspective emerges from the fourth annual DebtBusters Money-Stress Tracker, which surveyed over 27,000 participants during May and June.

This makes it one of the largest online studies exploring the impact of financial stress on the lives of South Africans.

Financial stress and its ripple effects

The 2025 survey indicated that:

• 70% of respondents reported experiencing financial stress, a decline from 78% in 2023 and 75% in 2024. While financial anxiety is decreasing, it continues to significantly affect day-to-day living. Among those experiencing stress, 91% noted its impact on their home life, 73% on their work life, and 73% on their health.

• Women still bear a disproportionate burden of financial stress, with nearly three-quarters of female respondents expressing concern. Women are approximately 10% more stressed financially and 20% more concerning work, home, and health issues compared to men. Nevertheless, stress levels for both genders have reduced by 5% to 15% across various life aspects since 2024, thanks to diminished national crises, such as loadshedding, lower inflation, and improved financial management that allows individuals to think beyond mere survival.

Psychologist Andrea Kellerman, collaborating on the Money-Stress Tracker, mentions that even a 5% reduction in stress (from 75% to 70% in the past year) leads to improved sleep and coping mechanisms. This underscores how small advancements can greatly enhance resilience and outlook.

Key financial concerns

For those grappling with financial stress, short-term worries prevail, particularly the fear of running out of money before the end of the month and difficulties in meeting monthly debt obligations.

Although the repercussions of rising interest rates remain significant, their impact has moderated compared to 2023 and 2024.

Demographic variations

• Age: Respondents aged 35 to 44 report the highest levels of financial stress. Concerns about retirement have also intensified among those aged 45 and older compared to 2024, indicating this demographic is increasingly considering long-term financial matters.

• Income: Individuals in lower-income brackets are especially anxious about the consequences of interest rate hikes and unforeseen expenses. While rising electricity costs are a common concern across all income groups, retirement worries are markedly higher among upper-income earners. Those earning over R20,000 per month often carry unsustainable debt levels, qualifying for and acquiring more credit than they can handle.

• Region: Inhabitants of the Western Cape report the highest financial concerns, surpassing Gauteng, which was the most stressed area in 2024. In the Western Cape, anxieties regarding unexpected costs and retirement are prevalent. Smaller provinces such as the Northern Cape, Limpopo, and Mpumalanga have shown significant increases in worries about electricity expenses and interest rates.

Borrowing and debt repayment trends

• 63% of participants allocate 30% or more of their after-tax income to debt repayment, with 48% spending over 40% on repayments, which is considered unsustainable.

• Individuals aged 45 and older are under the most strain regarding debt repayment, with 60% facing unmanageable debt levels.

• Those earning over R20,000 per month also feel significant pressure to repay their debts.

Addressing money stress

• 37% of respondents have reported actively working to cut down their monthly expenses, a decrease from 43% in 2022, indicating potential savings fatigue.

• An increasing number of consumers, about 35%, are looking for higher-paying or more suitable job opportunities to manage their finances, up from 26% in 2022.

• Younger consumers are particularly proactive about budgeting and are nearly four times more likely to seek better employment, showing a 56% greater inclination to manage financial stress compared to those over 35.

• Participants shared that there has been a shift in their strategies for coping with financial stress. In 2022 and 2023, the focus was on finding better jobs or initiating side hustles, while in 2024, debt counseling became a favored approach for relieving financial tension. Currently, there is a growing emphasis on entrepreneurship, multiple income sources, and financial independence, reflecting a trend towards self-sufficiency and varied income streams.

Benay Sager, executive head of DebtBusters, stresses that despite the slight overall reduction in stress, over 90% of South Africans with unmanageable debt are not actively seeking professional help, such as debt counseling.

“This underscores the ongoing need for stress-management initiatives, financial literacy programs, and awareness campaigns to combat stigma and promote early intervention,” said Sager.

“It also highlights the importance of innovative solutions to address financial stress, particularly those that help consumers optimize their finances.”