Financial Stress High Among High Earners in South Africa, Reveals DebtBusters Survey

South Africans earning over R20,000 per month are facing critical levels of financial stress, with the burden of debt weighing heaviest on this group. Findings from DebtBusters’ Money Stress Tracker survey indicate that not only is this segment of the population the most indebted, but they are also the least proactive in seeking assistance to manage their financial stress.

Key insights from the survey – which collated responses from 26,000 DebtBusters’ users who are not undergoing debt counseling – shed light on a national issue that affects personal well-being and economic stability. Despite a marginal decrease in reported financial stress from 78% to 75% of respondents within a year, the overarching trend remains troublingly upward from 70% in 2022.

The research conducted by DebtBusters defies the assumption that financial worries lessen with higher incomes. It reveals that the higher-income demographic – those earning above R20,000 monthly and primarily considered to be the South African middle class – exhibit high debt-to-income ratios, with many spending over 40% of their take-home pay on debt repayments, far exceeding the generally advised 30% threshold.

Benay Sager, executive head of DebtBusters, highlighted a silver lining where financial stress slightly eased owing to a respite from load-shedding and stable interest rates. However, the survey signaled a persistent apprehension, particularly among older individuals who struggle with the highest debt levels and a marked reticence to approach financial counseling services.

What’s more, societal pressures and the expectation for emotional provisioning compound for women who report a 10% higher stress level over finances than men, translating into more profound concerns about health and home life.

Psychologist Andrea Kellerman pointed to women being more forthcoming about their stress, which might partially explain this gender gap. Additionally, she notes that hormonal changes in individuals aged between 45 to 55 could dampen the energy required to address financial pressures, potentially leading to a freeze response and a postponement in dealing with stress.

Younger South Africans are not exempt from financial strain, despite being more open to seeking advice and confronting their money woes. This demographic, however, is hampered by other stressful factors, including limited job markets and demoralizing financial outlooks.

Conclusively, the widespread reluctance to acquire debt management support is a pressing concern, especially given the proven effectiveness of debt counseling. Sager remarks on the tragedy of missed opportunities for the many who could benefit from available help but remain immobilized by indecision, lack of information, or mistrust.