Individuals earning more than R30 000 per month are the most burdened.
A report has shown that many people in South Africa are under financial pressure, with individuals earning more than R30 000 spending nearly half of their salary paying debt instalments.
The Credit Stress Report from analytics firm Eighty20 has labelled these individuals as Heavy Hitters, as they are the country’s highest-income credit users and the most burdened.
The report released in late August examines consumer credit behaviour and the key economic events that shaped the second quarter’s landscape.
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Debt in SA
The report shows that the overall instalment-to-net income ratio for all credit-active South Africans was 28% in the second quarter of 2025. This means that between a quarter and a third of net income is spent on servicing debt.
“This burden is highest for the Heavy Hitters, with 48% of monthly income going to instalments, followed by the Middle Class at 37%.
“The Mass Market pays 19% of their income towards debt, while Comfortable Retirees now spend 22% of their monthly income on servicing debt, up from 20% in 2023.”
Heavy hitters earn between R30 000 and up to R120 000 per month.
More debt for heavy hitters
The report details that there were almost 5 500 new-to-credit individuals in the heavy hitters’ segment, accounting for 13.5% of all new loan balances for the quarter.
Total loan balances for the segment increased by 1.4% quarter-over-quarter (QoQ) to R1.7 trillion, representing 65% of the overall total loan balances.
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“Home loans made up most of the debt for the segment, with balances at R1 trillion, an increase of 1.1% QoQ. Total overdue balances on home loans are up to R11.8 billion (4.6% QoQ), contributing to the 3.3% QoQ increase in total overdue balances for the segment.”
Why are they called heavy hitters
The report labels these individuals as heavy hitters because rising interest rates significantly increase their monthly mortgage and vehicle instalments, creating financial pressure.
Another significant factor about the group is that they hold a large portion of the total mortgage and Vehicle and Asset Finance (VAF) loans; a default by this segment would have a major impact on the financial system.
The report highlights that the credit-active population grew by 4%.28% year-on-year. Overdue balances grew by 11% to R214.8 billion, while loans in default (more than three months in arrears) decreased to 41.5%.
“Heavy Hitters, Humble Elders and Comfortable Retirees exhibited the lowest proportions in default, while Mass Market has the highest proportion of individuals in default.”
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