Consumers were warned about spending too much over December and many listened, but most are still worse off after the festivities.
There is a reason why January is called Januworry – that broke feeling after December when you have no money for the month and try to recover from the festive buying hangover. The survey insights paint a dismal picture of a nation in deep financial trouble.
Debt Rescue conducted a survey earlier in January to determine the financial and emotional state of citizens as they navigate the first month of the new year. Some of the key results that paint a dismal picture include:
- 58.5% of respondents are financially worse off after the festive season
- 34.9% feel extremely stressed and anxious, while 29.3% feel worried, and 23.1% are completely overwhelmed by their financial situation in January
- 52% indicated that they saved up during the preceding months to be able to afford to celebrate
- 23% say they did not indulge in celebratory spending at all
- Over half (51.6%) say their biggest regret this year does not come from spending on luxury items, but rather the cost of celebrating
- 39.4% of those polled say the high cost of living is the main reason January is worse than other months, while 37% cite school fees and other back-to-school costs as their biggest expense and source of financial concern.
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Survey shows consumers are worse off in January than in December
“The results of our post-festive season survey are deeply concerning to say the least and indicate that South Africans are substantially worse off in January than they were in December,” Neil Roets, CEO of Debt Rescue, says.
He points out that the reasons for this are not hard to pinpoint, and while festive season spending and the high cost of living certainly play a part, for many hardworking citizens, the early December payday means that they face a six-week-long stretch on income that normally covers approximately four, resulting in intense pressure leading up to the end of January.
Roets says that while festive season spending does impact citizens’ finances, 52% of survey respondents indicated that they saved up in the preceding months to afford to celebrate.
“This demonstrates heightened financial caution and essentially means that consumers took great care not to spend money they do not have over the holiday period, with 23% saying they did not indulge in celebratory spending at all this year.”
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Biggest regret: Spending on December celebrations, not luxury
An interesting takeaway from the Debt Rescue survey is that over half (51.6%) of respondents say their biggest regret this year does not come from spending on luxury items, but rather from the cost of celebrating.
They most regret spending on the very things tied to festive season expectations: food for gatherings, entertainment, gifts and outings. Roets says this indicates that households are coerced into financial strain by social pressure, where even basic celebratory spending has now become a source of financial pain.
“While finances are too tight to mention, it is the emotional toll this takes on consumers that is of real concern,” Roets warns. “This comes through loud and clear in the Debt Rescue survey stats with 34.9% feeling extremely stressed and anxious, while 29.3% feel worried and 23.1% are completely overwhelmed by their financial situation in January.”
Roets also points out that the South African Depression and Anxiety Group (SADAG) highlighted that January’s financial pressure, combined with post-festive fatigue, impacts mental wellness, causing anxiety and stress. “It is important to seek help, no matter how difficult it may be.”
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High cost-of-living and school fees weigh on households
Debt Rescue’s survey results clearly show that the high cost-of-living and school costs are the biggest drivers of emotional strain among consumers this year, with 39.4% of respondents saying the high cost of living is the main reason January is worse than other months, while 37% cite school fees and other back-to-school costs as their biggest expense and source of financial concern.
The findings of the 1Life Insurance annual Back-to-School Survey for 2026 are similar, with a staggering 95% of respondents admitting that preparing for the academic year is stressful, underscoring the emotional toll that education costs place on families.
The survey revealed that 80% of households experience financial setbacks during this time of year, often forcing compromises that undermine long-term wealth-building goals.
Roets says the escalating cost of living at the top of the list of worries is not the only worry for most South Africans right now. “It locked millions of citizens into a debt cycle that they have no escape from, while the most vulnerable continue to suffer through every month, not just January.”
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No short-term relief despite possible repo rate cut
He says that with financial experts expecting interest rates to remain unchanged next week, when the Monetary Policy Committee (MPC) meets for the first repo rate announcement of 2026, there is no short-term relief in sight.
“The reality is that indebted South Africans will need to bite the bullet for the foreseeable future when repaying their home and car loans, personal loans and other forms of credit. The balance of factors suggests it is likely that the South African Reserve Bank (Sarb) will keep interest rates unchanged, as there are several moving parts influencing this decision.
“The Sarb will ultimately weigh both domestic inflation conditions and global risks before taking the next step in the rate-cutting cycle.”
Roets also points out that households will be trying to cut back on costs wherever possible to manage the post-festive season financial minefield that is an inevitable part of JanuWorry, but says that most consumers will be turning to their credit and store cards to make it through the month, or even gambling.
