A new report from National Debt Advisors has revealed perhaps an unsurprising fact: low-income earners are drowning in debt.

The debt counselling company’s latest consumer report shows South Africans earning under R10,000 a month are in debt of up to EIGHT times their income, and it only gets worse as salaries rise.

The report is based on over 70,000 consumers, showing that the average person in debt review owes more than R91,000 while earning under R10,000.

Higher earners (those earning between R30,000 and R50,000) are even more exposed, with debt levels exceeding 28 times their income.

Sebastien Alexanderson, Head of National Debt Advisors, says the numbers reflect a growing disconnect between income and the cost of living.

“South Africans are not living beyond their means anymore. Their means are simply not enough to live on. Debt has become the way people are closing that gap.”

He says the current economic environment is making it harder for that gap to close.

“Interest rate relief is not coming as quickly as many people hoped. With the repo rate still around 6.5% and prime close to 10%, borrowing remains expensive. That keeps pressure on anyone with a loan, a credit card, or a bond.”

Alexanderson says currency weakness is adding to the strain.

“The rand has been under pressure, and when that happens, the cost of living goes up. As petrol, food, and other essentials become more expensive, households feel it immediately. Even if inflation looks like it is easing, the reality on the ground is very different.”

In addition, slow economic growth is limiting any real income relief.

“We are sitting with growth of around 1% and unemployment close to 32%. That means incomes are not growing fast enough, and for many people, they are not growing at all. At the same time, there is pressure on government finances, which brings uncertainty around jobs and wages, especially in the public sector.”

According to Alexanderson, the type of debt people are relying on is part of the problem.

“Almost all the debt we are seeing is unsecured. That means personal loans, credit cards, and store accounts. It is expensive credit, but it is also the most accessible.”

Among lower-income earners, 96% of debt is unsecured, leaving people very exposed.

Alexanderson says this is not just affecting the most vulnerable, but also working South Africans.

“More than half of the people coming to us are between 31 and 45. These are working South Africans in their prime, but they are already overextended.”

Over-indebtedness exceeds 50% in lower-income groups and remains above 40% even among higher earners.

“There is a perception that if you earn more, you are safer. What we are seeing is the opposite. Higher income gives you access to more credit, but in this environment, that also increases your risk.”

Alexanderson says the data points to a deeper issue in the economy, that this is not just about people making bad choices, but that there is a structural gap between income and the real cost of living.

“Debt is no longer something people use occasionally. For a lot of households, it has become part of how they survive every single month.”

To access debt advice, contact National Debt Advisors.