Top earners in debt counselling need 97% of pay for debt
DebtBusters' Q3 2026 Debt Index shows a record 64% of new debt counselling applicants have a payday loan, and those taking home over R50,000 a month need 97% of their pay for debt. The key numbers explained.
People in debt counselling who take home more than R50,000 a month need 97% of their pay just to cover debt repayments, according to DebtBusters' Q3 2026 Debt Index, reported on 10 November. A record 64% of new applicants also had a one month payday loan, up from 57% a year ago (Lifestyle & Tech; IOL).
The figures come from people who applied for debt counselling with DebtBusters, so they show consumers already under pressure, not all South Africans (IOL).
What are the main numbers?
| Measure | Q3 2026 | Comparison |
|---|---|---|
| Take-home pay needed for debt, all applicants | 65% | Peak of 73% in Q1 2021 |
| Take-home pay needed for debt, top earners (over R50,000 net) | 97% | |
| Total debt of top earners vs annual net income | 300% | Peak of 340% in Q3 2024 |
| Applicants with a payday loan | 64% | 57% a year earlier |
| Applicants with a personal loan | 96% | |
| Average credit agreements per applicant | 8.8 | Highest since the index began |
| Share of debt owed to non-bank lenders | 15% | 8% in Q3 2024 |
| Share of debt owed to banks | 65% | Peak of 75% in Q3 2023 |
Sources: Lifestyle & Tech; IOL; BusinessTech.
Why are payday loans rising?
DebtBusters says people are turning to retailers, microlenders, unsecured lenders and online lenders when they can't borrow from a bank or need cash quickly (Lifestyle & Tech). "At 8.8, the average number of credit agreements per applicant is at the highest since the Debt Index began," said Benay Sager, executive head of DebtBusters (IOL).
Why are higher earners struggling?
For applicants taking home more than R50,000, total debt is 44% higher than in 2021 and unsecured debt is up 67%, while their salaries grew only 12% over the same period (IOL).
What is pushing up living costs?
DebtBusters points to petrol prices, up 46% since 2021, and electricity tariffs, up 101%. People taking home R10,000 to R20,000 a month spend 38% of their disposable income on groceries, rising to 50% for those under R10,000 (Lifestyle & Tech).
How expensive is the debt?
| Type of credit | Average interest rate |
|---|---|
| Unsecured debt | 19.85% |
| Vehicle finance | 14.11% |
| Home loans | 10.6% |
Source: IOL. The repo rate has risen to 7.25% after cuts from late 2024 into 2025 (Lifestyle & Tech).
Who is getting into trouble?
Under 25s now make up 9% of new debt counselling applicants, triple their share in 2024. People aged 45 and older make up 29%, up from 22% in 2016 (Lifestyle & Tech).
Does debt counselling help?
DebtBusters says about 15 times as many people earned clearance certificates in Q3 2026 as in the same quarter a decade ago, and people under counselling paid creditors around R613 million in the quarter (Lifestyle & Tech; IOL). We explain how the process works in our guide to debt review.
FAQ
What is the DebtBusters Debt Index?
It is a quarterly report by DebtBusters based on information from people who apply for debt counselling. It tracks how much of their income goes to debt and what kind of credit they hold.
How many debt counselling applicants have payday loans?
A record 64% in Q3 2026, up from 57% a year earlier, according to DebtBusters.
How much of their pay do top earners spend on debt?
Applicants taking home more than R50,000 a month need 97% of their take-home pay to service debt, and their total debt is 300% of their annual net income.