Many South Africans are using their salaries to service existing debt, only to take on more borrowing to cover their living costs, according to debt-counselling firm DebtBusters.

Executive Head Benay Sager says the pattern has become entrenched over the past decade as household incomes fail to keep pace with rising expenses.

Sager notes that take-home pay has barely grown since around 2015, while essential costs have risen sharply. “Incomes have not kept up with inflation as people are experiencing it,” he said. “When we talk about inflation, we often refer to Consumer Price Index, but what matters most for people’s finances are electricity tariffs, petrol prices, municipal rates, all of which have been increasing far faster than incomes.”

He added that many consumers are now relying on credit cards and personal loans to fill the gap left by stagnant wages and surging living costs.

Industry analysts warn that without meaningful income growth or relief on essential services, households may continue sliding further into debt.

–ChannelAfrica–