South Africans are less stressed financially than in 2023. But with a catch

South Africans are less stressed financially than in 2023. But with a catch

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It may only be by a small margin, but South Africans are less stressed financially than they were in 2023. This is according to debt counselling and consolidation firm DebtBusters’ annual Money Stress Tracker Survey. Their latest research shows that 75% of respondents are experiencing financial stress. However, the good news is this is a modest improvement from 78% in 2023, reports BusinessLive.

SOUTH AFRICANS ARE LESS STRESSED FINANCIALLY

South Africans are slightly more positive about their financial prospects under the new Government of National Unity. Image: Waldo Swiegers/Bloomberg

Accordingly, the story of the last year reads like a tale of two halves. Late in 2023, sustained load shedding and persistent consumer inflation left a negative mark. Now, in 2024, with the positivity of a new Government of National Unity (GNU), South Africans are less stressed financially. Compound that with the eradication of load shedding for the foreseeable future, and the stabilising of interest rates, and things are looking up.

DebtBusters’ Benay Sager believes a sustained period without load-shedding and consumer inflation has put consumers more at ease in 2024. “Not knowing if you’re going to wake up to stage 3 or stage 6 load-shedding and interest rate hikes is stressful. Consumers like certainty,” said Sager.

BELT-TIGHTENING IS OVER

South Africans are less stressed financially
The improvements are incremental, but there is positivity about peoples’ financial situation. Image: File

Moreover, following the government’s aggressive monetary tightening of 2021, the South African Reserve Bank (SARB) has left the repo rate unchanged at 8.25% for more than 14 months now. The last increase was in May 2023 and there is even talk the SARB will follow the US Federal Reserve in cutting rates in the final quarter of 2024.

Better still, the survey finds South Africans are less stressed financially because they’re taking control of their personal finances:

  • 35% of respondents are actively looking for better-paying jobs (up from 26%).
  • 27% of those surveyed are working off a household budget (up from 20%).
  • The survey also found that 68% of employed South Africans were optimistic that their financial situation would improve in the near future.
  • 57% of South Africans now had multiple incomes streams (up from 50%).
  • 43% of working South Africans now use a financial adviser (up from 39%).

SHIFT IN MINDSET

South Africans are less stressed financially
Better financial planning is the key to a secure future. Image: Bank Zero

Nevertheless, the survey still showed some interesting results. For instance, that financial stress is 10% higher among women than men. It is believed this is due to the added burden of parenting, as women increasingly become both mothers and primary breadwinners in the home. Likewise, the most common concern among respondents was running out of money before month-end to pay bills.

HOW ARE YOU HANDLING YOUR FINANCIAL STRESS IN 2024?  

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