Latest news with #debtrepayments
News24
6 hours ago
- Business
- News24
These are SA's most financially stressed people — survey
The people who are feeling the most stressed about their finances include women, those earning between R10 000 and R20 000, and people over the age of 45. These were the results of the 2025 DebtBusters Money Stress Tracker, which surveyed 27 000 people about how financial stress is affecting their lives. Overall, 70% of those surveyed said they were feeling stressed about their finances. While this is an improvement from the 78% recorded in 2023, it is a very high figure. The survey respondents were not under debt review but had registered on the DebtBusters website. This suggests that the survey may be biased towards those in financial difficulty who are searching for information on managing their debt. Nevertheless, it is concerning that nearly half of those surveyed spend more than 40% of their after-tax income on debt repayments. According to Benay Sager of DebtBusters, consumers should not spend more than 30% of their take-home pay on debt repayments, with an amount above 40% considered unsustainable. Caught in a sandwich Those aged 45 to 54 are the only age group that is feeling more stressed now than in 2022, and they have the highest levels of debt. Intuitively, the higher debt levels would make sense as they are the age group most likely to have mortgage and car repayments, but even so, the debt levels are alarming. Sixty percent of this age group have debt repayments in excess of 40%. This age group is most likely to find itself in the 'sandwich generation', supporting both adult children and ageing parents. This is also the age when a person would be starting to worry about their financial ability to retire. They would be facing choices between paying off debt and contributing to retirement funds. Women juggle more roles The survey found that women suffer significantly more stress than men when it comes to their finances and even more so when it comes to work, home life and their health. Commenting on these results, psychologist Andrea Kellerman says women carry multiple roles such as caregivers, professionals, mothers, and daughters, and tend to worry about the wellbeing of their entire household. Women are particularly concerned about running out of money before the end of the month and meeting their debt obligations. Nearly half of the mothers in South Africa are raising children on their own, which could also be contributing to their stress levels both financially and as caregivers. Higher income, higher debt While one would expect lower-income earners to suffer higher financial stress, the Money-Stress Tracker found that those earning above R20 000 were far more indebted. Nearly 60% of those earning between R20 000 and R35 000 were spending more than 40% of their income on debt repayments, with one in four people spending in excess of 50% of their income on debt. This is the segment that can access credit more easily and is more likely to have car and house finance. The rapid increase in interest rates between 2022 and 2024 would have had a significant impact on their monthly cash flow. Saving fatigue Despite these high levels of financial stress, the number of people taking active steps to control their finances has declined by over 10%. The number of people trying to cut back on their spending has declined since the peak in 2023, which Sager says could be an indication of 'savings fatigue'. It could also mean that people feel they have cut back as much as possible and have no further savings to make. When asked what is stopping them from taking action, most people feel stuck or do not know who to trust to help them, while younger people are more likely to feel too embarrassed to reach out for help. There also seems to be a disconnect or lack of awareness around their personal finances. Many who spend more than 40% of their income on debt repayments do not believe that they are over-indebted or that they need help. The most important message to those who are feeling stressed about their finances is to take action. It starts with understanding your current financial situation and writing down all your financial obligations and day-to-day spending. While it may feel like a daunting task, in most cases, once you have a proper view of your financial situation, you will be able to put a plan in place. Simply having a plan and a sense of control will reduce your stress levels. Once your stress levels reduce, you will be in a better position to make improved financial decisions, rather than reacting in the moment, and signing up for another expensive loan to get by. If you believe you are over-indebted and, even with a proper budget in place, you are unable to meet your debt obligations, then you should consider debt counselling rather than defaulting on your debt obligations.
RNZ News
03-07-2025
- Business
- RNZ News
Finance Minister on tackling the cost of living crisis
life and society economy 21 minutes ago The Prime Minister has promised to take action in the coming months to tackle the cost of living crisis. Christopher Luxon has acknowledged it is still tough out there for too many kiwis and the government's focus is on unlocking economic growth. According to Stats NZ the price of food has gone up 4.4% in the last year. Electricity is up almost 9% and gas is up more than 15%. As of March last year house insurance was up almost 25 % and contents insurance up about 28%. This week figures from Centrix showed almost half a million people are behind on debt repayments. Finance Minister Nicola Willis spoke to Lisa Owen.
