Nearly four in 10 South Africans expect to miss at least one bill or loan repayment, according to TransUnion’s latest Consumer Pulse Study, highlighting how tight household cash flow has become.

The same study found that 79% now rank inflation among their top three financial concerns, while just 37% believe their income is keeping pace with rising prices.

Renier Botha, finance expert at a national same-day loan company, says the most important thing for households under pressure is to act before a missed payment turns into a bigger problem.

Start with the bills that keep your household functioning

“When there is genuinely not enough money to cover everything, start by protecting the essentials that keep the household running.

“Rent or bond payments, electricity, food and the transport you rely on for work should be visible in your budget first. Once those are clear, you can see what is left for other commitments instead of paying whichever bill is shouting the loudest.”

Contact lenders before the payment date

“If you already know you are going to struggle with a repayment, don’t wait for the debit order to bounce.

“Contact the credit provider as early as you can and explain the situation. You may be able to discuss a more affordable arrangement, and even where that is not possible, dealing with the problem early gives you more options than ignoring it.”

This is also the approach recommended by South Africa’s National Credit Regulator, which advises consumers who are struggling to service debt to contact their credit provider and try to negotiate an affordable repayment plan.

Don’t borrow simply to hide a recurring monthly shortfall

“One unexpected expense is very different from being short every single month.

“If you are repeatedly borrowing to pay another debt, buy groceries or get through to payday, that is a sign the problem is bigger than one bill. Taking on more credit without a clear repayment plan can simply move the pressure into next month.”

The NCR similarly advises consumers to borrow only where necessary and to contact lenders immediately if they think they will not be able to meet an instalment.

Check what can actually be paused or cut

“If the budget is tight, go through your bank statement rather than relying on memory.

“Subscriptions, app payments, memberships and other small debits can add up, but be realistic about what that will solve. Cancelling R100 here and there can help, but it will not fix a R2,000 monthly gap.”

More than half of consumers surveyed by TransUnion had already cut discretionary spending, while 28% had cancelled subscriptions or memberships. Despite that, 39% still expected to miss a payment, showing that the pressure goes beyond optional spending for many households.

Get help if the numbers no longer work

“If your income cannot cover your normal living costs and debt repayments even after you have cut back, don’t keep trying to patch the gap indefinitely.

“That is the point to speak to your credit providers or a registered debt counsellor and get a proper view of the options available to you.”

The NCR says consumers who cannot reach an affordable arrangement with their credit providers can approach a registered debt counsellor for assistance.

“The biggest mistake is waiting until several payments have already been missed.

“The sooner you know exactly what is coming in, what has to go out and where the shortfall sits, the easier it is to make a decision before late fees and missed repayments make the situation harder.”