Financial pressure is taking a heavy toll on the wellbeing and stability of South African families, with nearly 30% of salary earners reporting impact on their mental health, sleep, and relationships.

According to an analysis from the National Debt Advisors of the 109,425 clients who have entered debt review since 2014, shows the average client earns R15,737 a month before deductions and owes R174,787, equivalent to 92.6% of annual gross income.

Additionally, almost all of the debt is unsecured. Of NDA’s clients, 98% hold at least one unsecured agreement. Clients earning under R5,000 a month spend about two thirds of their gross income on living expenses, compared with under half for those earning above R30,000.

“Many South African households run out of money before the month ends, with a 2024 Standard Bank analysis of more than 402,000 salary earners finding that on the day before payday, 49% were in overdraft, in the red, or down to R1,000 or less,” said Head of National Debt Advisors, Sebastien Alexanderson.

To bridge the gap, Old Mutual’s 2026 Savings and Investment Monitor found that 47% of working South Africans dipped into savings over the past year, 64% now hold a personal loan (up from 54%, with 62% of these taken out for an unplanned expense), and 28% borrow from family and friends, up from 18% a year earlier.

National Debt Advisors’ online loan application survey, released in July 2026, found that about one in six applications were submitted between 21:00 and 05:00, including on weekends, while about one in seven applicants applied more than once.

“This behaviour shows that financial pressure often spills into the home even after office hours, with consumers searching for relief long after the day ends,” said Alexanderson.

He said black tax adds to this pressure, with Old Mutual’s 2026 Savings and Investment Monitor finding that four in ten working South Africans support both their children and their parents or other adult dependants.

“When borrowing extends to family members, financial tensions can spill over into family gatherings and personal relationships, adding to the emotional strain. Unlike traditional creditors, you cannot simply block a relative’s number to escape the pressure of debt,” said Alexanderson.

He also said schooling is affected for children in these households. The Stats SA General Household Survey (2025) found that 21.5% of early school leavers aged seven to 18 cite a lack of money for fees, so a household’s money problems can cut a child’s education short.

“For parents, financial anxiety reduces the patience, focus, and emotional energy needed to assist children with schooling or handle normal childhood behavioural challenges,” said Alexanderson.

For millions of working South Africans, the end of the month no longer brings relief. Instead, as living costs continue to outstrip income,

According to Alexanderson, payday stress is often a month-long reality for many South African households.

“Payday used to feel like a fresh start. Now it feels like a temporary rescue that lasts two or three days before debit orders clear. When households spend 30 days doing mental math just to survive, the exhaustion is carried into homes, workplaces, hugely impacting the mental health of the entire family.”

Five Signs Debt Has Moved Into Your Home

5 Wwarning signs that financial stress is eroding household stability:

• Arguments over daily basics: Small expenses like groceries or school items trigger explosive arguments.
• The single-person burden: One partner manages all finances in secret, hiding the true picture to protect the rest of the family.
• Avoidance behaviour: Unopened mail, ignored creditor calls, and fear of checking account balances.
• Payday brings zero relief: Income is fully absorbed by immediate debt obligations within days of arriving.
• Behavioural shifts in children: Sleep problems, irritability, or children voicing explicit anxiety about household money.