Sebastien Alexanderson, Head of National Debt Advisors
July is usually a time to talk about saving money, but this year, South Africans are just trying to stay afloat. Households are being hit hard by rising costs: electricity bills are climbing by as much as 12.7%, water and sanitation charges are up 13.9%, and steep hikes in rates and taxes are sweeping across major metros. And that’s not all—thanks to Eskom’s new Retail Tariff Plan, some households are facing electricity increases of up to 80%, with added daily fees and capacity charges piling on the pressure.
Sebastien Alexanderson, Head of National Debt Advisors, says people aren’t failing to save because they’re irresponsible. They’re failing to save because there’s nothing left to cut.
“We’re seeing families who’ve done everything right with no luxury spending, strict budgets, paid-off cars, and yet they’re still drowning,” says Alexanderson. “Telling people to just ‘budget better’ is starting to sound more like blame and not advice.”
The math just doesn’t add up anymore
According to the latest Cost of Living data from Eco Flow, a family of four in Johannesburg now needs over R41,000 a month to get by, before rent. In Cape Town, rent for a modest three-bedroom apartment can exceed R25,000, and even Bloemfontein, considered one of the most affordable cities, has seen monthly living costs rise to R37,000 for a family of four.
“Compare that to average monthly salaries in Johannesburg, Cape Town, Durban, and Pretoria, which range from R18,000 to R28,800; even two incomes often aren’t enough to meet basic living costs,” says Alexanderson. “This isn’t a reflection of poor financial decisions, but of a system that’s become unaffordable for ordinary South Africans.”
Traditional budgeting isn’t working
Every July, South Africans are told to tighten their belts. Cancel DStv. Eat out less. Shop smarter.
“But the truth is, most households have already done that,” Alexanderson says. “We see it every day—clients who’ve slashed every non-essential. Their grocery list is bare, the car is paid off, and still, they can’t save R100 at month-end.”
In the latest Consumer Report from National Debt Advisors, the numbers speak volumes: out of 60,868 consumers under debt review, over 94% don’t own a car and 95% don’t have a home loan. These are not people drowning in asset-based debt. They’re drowning in unsecured credit used to survive day to day.
More than 40,000 consumers are juggling three or more unsecured loans, and some are managing up to 34 separate loans. Credit card debt is equally widespread, with over 30,000 clients holding at least one, while nearly 9,000 people have multiple personal loans, some up to 17.
Over 40,000 consumers also carry store accounts, often used to buy clothing, groceries, or basic household items when cash runs out. And with only 691 clients making use of overdrafts, it’s clear most consumers are already beyond the financial limits traditionally offered by banks.
So, what’s the solution?
Instead of guilt-based advice, Alexanderson advises realistic, adaptive tools.
Micro-saving tactics: Small changes like rounding up purchases and joining flexible savings clubs for emergencies can help build a cushion without overwhelming your budget.
Income patching over austerity: Supplementing your income by selling unused goods and using prepaid electricity and airtime tricks can be more effective than extreme cutbacks.
Rebudgeting around billing cycles: Adjusting payment dates and knowing when and how to dispute tariffs can improve cash flow and reduce financial pressure throughout the month.
Emotional budgeting support: Access to free mental wellness tools and non-judgmental debt counselling can help restore confidence and control when money stress feels overwhelming.
ENDS
