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Many middle-class South Africans face significant financial pressure, with nearly half struggling to make it to payday with positive bank balances.

Too Much Month at the End of the Salary

According to recent research by Standard Bank, almost half of salaried individuals have R1,000 or less (including negative balances as they get by on credit) by the time payday rolls around.

This shows that many salary earners, even though receiving regular income, find it challenging to cover living expenses fully without relying heavily on credit.

The research covered mainly middle class earners (from R15 000- R45 000/month).

Standard Bank’s data reveals just how widespread this financial strain is: out of over 400,000 individuals examined, nearly 50% either had minimal positive funds or were deep in overdraft before payday.

Access To Credit Hides the Extent of The Trouble

Since consumers can repeatedly dip into their overdraft or credit facilities many consumers fall into a monthly routine of relying on their credit cards to make it through. They spend, they top op their accounts and then spend again. Often these consumers never getting back into a positive balance situation.

This may actually disguise how bad their situation is if they don’t think about it too much. Normally, the extent of the problem only becomes obvious when they near or hit their credit limit suddenly.

Ask an Expert

If you have recently found yourself sinking deeper and deeper into debt and not being able to make it through the month without relying heavily on credit then now might be a good time to talk proactively to a Debt Counsellor.

They can offer you (free) advice and tips on how to slowly dig yourself out of your debt dependence.