The report found that total overdue balances grew by R8.3 billion in the quarter.
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South Africans are sinking deeper into debt as more consumers struggle to keep up with repayments, with over-indebtedness continuing to rise in the second quarter of 2026.
The Credit Stress Report revealed this on Thursday, 10 September. The report examines people’s credit behaviour and the key economic events that affected South Africans during the period.
The worsening debt burden points to growing financial pressure on households already grappling with the high cost of living and limited disposable incomes.
South Africa’s economic state
The report compiled by Eighty20 in collaboration with Xpert Decision Systems (XDS), noted that the country’s economic outlook softened during the quarter, with GDP contracting more than expected in the second quarter.
Inflation reversed course, rising to 4.5% year-on-year on the back of surging petrol and diesel prices. The South African Reserve Bank (SARB) ended its easing cycle, raising the repo rate by 25 basis points bps to 7.0% while retail sales grew 2.6% year-on-year.
“Credit active consumers and loan balances increased, and the proportion of loans in arrears eased slightly to 34.0%,” read the report.
People fail to repay loans
The report found that total open loans grew by 690 000 (1.2%) during the period to 56.3 million, while outstanding balances grew by R16 billion (0.6%), reaching R2.7 trillion.
“Over-indebtedness continued to increase, with 41.8% of credit-active South Africans in default (3 or more months in arrears) on one or more loans,” read the report.
“The number of defaulters grew by nearly 208 000 people, and the number of loans in arrears continued to grow, with the largest proportion of loans in arrears since 2024 third quarter.”
The Credit Stress Report found that total overdue balances grew by R8.3 billion in the quarter, a 3.7% increase for the quarter and 9% year-on-year, to R233 billion (8.6% of total outstanding debt).
Women and credit
Eighty20 gathers its data by combining and overlaying a wide variety of public, private, and proprietary South African market research and administrative datasets.
Through its partnership with Xpert Decision Systems (XDS), the company accesses aggregated credit and active consumer data, along with tracking metrics ranging from retail credit to mortgages.
The Credit Stress Report for the second quarter also focused on women to celebrate Women’s Month. It looked at how women hold and manage their credit obligations.
Most women are credit active
The report found that women account for 58% of credit-active consumers in the second quarter of 2026.
“This headcount edge does not translate into equivalent exposure: women hold only 46% of total credit current balance versus 54% for men,” noted the report.
“The gap is most pronounced in vehicle asset finance, typically a high-value, secured product, where women hold just 41% of exposure.”
Women and retail loans
The report found that women are overrepresented in retail loans, holding 62% of exposure in this lower-value, unsecured product, echoing how less affluent segments lean on retail credit to supplement income.
Retail loans include personal loans, home loans and vehicle financing.
“From a credit stress perspective, women have had more credit stress than men since at least mid-2023, though the gap has narrowed markedly over the past two quarters, pointing to a convergence in credit pressure between the genders.”
The report highlighted that the ongoing conflict in the Middle East remains the key risk for the future outlook.
