The report examines consumer credit behaviour.
The latest Credit Stress Report has revealed that outstanding debt in the economy continued to increase in the first quarter of 2026, with total outstanding loan balances rising by R41 billion (1.4%) to reach R2.7 trillion.
The increase was driven by growth in open loan accounts, pointing to continued demand for credit despite ongoing financial pressure on households and businesses.
Compiled by Eighty20 in collaboration with Xpert Decision Systems (XDS), the report is released quarterly to examine consumer credit behaviour and the key economic events that have impacted South Africans over the period.
More loans opened in first quarter
According to the report, 875 000 loans were opened in the first three months of the year, bringing the total number of loans active in the system to 56 million. What is concerning is that outstanding balances grew by R41 billion (1.4%), reaching R2.7 trillion.
The report highlighted that over-indebtedness continued to increase, with 41% of credit-active South Africans in default (three or more months in arrears) on one or more loans.
“The number of defaulters grew by nearly 400 000 people and the percentage of loans in arrears grew by more than 1m, marking the largest proportion of loans in arrears since the third quarter of 2024,” read the report.
“The total sum of overdue balances grew in the quarter by R12.6 billion, which is 5.6% growth for the quarter, and 14% year-on-year to R237bn (8.8% of total outstanding debt).”
Youth and loans
The report highlighted that people younger than 24 years old account for roughly 2% of credit-active consumers by number and less than 0.5% by value.
“Youth credit behaviour cannot be understood in isolation from the broader economic context. This includes increasing levels of unemployment, deteriorating education prospects, and a collapsing National Student Financial Aid Scheme (NSFAS),” said Eighty20.
“The Students and Scholars segment has a million individuals who, between them, hold 1.56 million loans and took out roughly 265 000 new loans in the first quarter (up 22% year-on-year), reflecting ongoing engagement with credit.”
Retail credit, unsecured loans and credit cards
The report split the youth into two groups:
Less Affluent Youth: About 950 000 individuals with an average income of R4 315 per month
More Affluent Youth: About 72 000 individuals with an average income of R26 504 per month
“The gap between these groups is stark, and it fundamentally shapes their engagement with credit,” read the report. “For the Less Affluent Youth, 86% of these consumers have retail credit, 18% have unsecured loans, with only 9% owning credit cards, and a negligible amount of vehicle and home loan finance.
“For the More Affluent Youth, 64% of these consumers have retail credit, 46% have unsecured loans, and 40% have credit cards, with 22% VAF and 4% home loans. The biggest contributor to the total exposure for this cohort is in VAF (49%), which is due to the high value of VAF products.”
Highlights of the first quarter
The report listed the following as the economic highlights for the first three months of the year:
- Petrol and diesel prices both dropped in quarter one, but the conflict in the Middle East in February spiked oil prices to $91 per barrel, with significant follow-on fuel price increases that landed in quarter two
- FNB/Bureau for Economic Research Consumer Confidence Index rose to -7 from -9
- The Repo rate held at 6.75%
- The rand continued to perform favourably against the USD, strengthening by nearly 4.2% quarter-on-quarter
- Inflation eased to 3.2%
- The 2026 forecast for GDP rose to 1.6%