Persistent financial strain is forcing South Africans to sell off their valuables, carpool, move their children to cheaper schools, downsize their homes and make drastic cutbacks on eating out and subscription services, to stay afloat.
Online research company infoQuest recently conducted a survey of 300 South African consumers to assess their current financial situation and measures they are taking to cope with the pressure.
The report found that the “new normal” for many South Africans includes side hustles across all age groups, informal loans and frugal living to ensure financial survival.
“Lingering economic challenges, including high unemployment, lower-than-inflation salary increases and a weaker rand mean that household incomes are often stagnant while the cost of living continues to climb. This creates a challenging environment where families are forced to make tough choices simply to cover essential expenses,” the report stated.
The findings show that overall, South Africans are dissatisfied with their current financial situation, with only 15% being very satisfied.
“The 2025 results show that the current situation for most South Africans has not improved in any substantial way, even after a further two-year period,” the report said.
The findings also show that debt and essential expenses drive financial strain.
Credit card payments are a major struggle with 51% reporting difficulty in making monthly payments on this debt.
Essential costs also pose a widespread problem with about one third of consumers struggling to pay for fundamental expenses, including groceries, home loan repayments, fuel to get to work, and school fees.
It also found that consumers are turning to side jobs to generate cash.
The most common action is getting another job or a side hustle, with 42% of respondents using this method to improve their cashflow.
“This highlights that consumers are primarily focused on increasing their income to manage their financial situation.”
According to the report there were no significant age skews, indicating that having more than one job is no longer a younger generational phenomenon, but extends to all age categories.
It also found that a substantial number of consumers are selling off assets to get cash.
“Selling household items (21%) and valuables like art or jewellery (18%) are the next most common methods after finding additional work. This shows that many are liquidating personal belongings to meet their financial needs.”
While less common than the other methods, some are resorting to more drastic measures to free up funds, including moving children to a cheaper school (16%), selling a motor vehicle (7%) and making changes to their living situation, such as selling property and moving to a cheaper property (5%), moving in with family (5%), or renting (4%).
“These actions indicate the severity of the financial pressure faced by some individuals,” the report said.
There’s also been a focus on immediate spending adjustments among consumers.
The report found the top three actions include:
- 91% of consumers looking for more promotions and bargains;
- 85% spending less on luxuries and spontaneous shopping;
- 83% spending less on going out/eating out/socialising.
“This demonstrates a strong focus on cutting back on non-essential and day-to-day expenditures. Sticking to a monthly budget (83%) is also a widely adopted strategy, showing a commitment to disciplined financial planning.”
The report also found that cost-cutting on goods and services has become a priority among consumers.
“A significant number of consumers are making conscious choices about the products and services they use. Reducing subscription services (66%), buying local rather than international products (65%), and changing where they buy groceries (62%) are common actions.
“These behaviours show a move towards more cost-effective alternatives and supporting local economies, due to financial pressure. While less common, a notable portion of the population is making more significant lifestyle sacrifices.
“Actions like cutting down on hobbies (56%), carpooling or using public transport (51%), cutting down on sports/gym (49%), and even downsizing homes (39%) reflect a willingness to make deeper, more impactful changes to their lives. The less frequent, but still present, actions of putting studies/education on hold (37%) and selling/pawning possessions (29%) further highlight the extent of the financial strain on some individuals,” the report said.
infoQuest CEO Claire Heckrath said the data paints a picture of a resilient, but financially pressured, population.
“The continued struggle with essential bills and the preference for informal debt highlight a financial system under significant stress, where access to traditional credit may be limited or seen as too costly.
“Ultimately, the report shows that the burden of managing financial hardship has fallen squarely on the individual, with little evidence of a broader economic environment that is substantially easing their burden,” said Heckrath.
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