South Africans Forced to Buy Food on Credit as Cost-of-Living Crisis Deepens

South Africa is facing a severe cost-of-living crisis, with stagnant wages and rising expenses forcing households to rely on credit to purchase basic necessities like food, according to a recent Debt Rescue survey.

Desperate Measures as Households Struggle

Annaline van der Poel, Chief Legal Officer at Debt Rescue, described the situation as “desperate” in an interview with Newzroom Afrika. The survey reveals that 86% of respondents have already cut back on groceries and transport expenses to afford electricity bills – a problem exacerbated by Eskom’s 12.7% tariff hike in April.

Van der Poel noted this marks the second survey in a year highlighting the devastating impact of rising living costs. While households initially reduced meal frequency, many are now eliminating essential food items from their budgets entirely.

The Debt Trap Worsens

The financial strain has led to increased household debt, with inflation continuing to outpace income growth. “For the average household, income is not keeping up,” van der Poel explained. “Debt is still at enormously high rates.”

This unsustainable situation forces families to use credit for basic food purchases, creating a dangerous cycle of debt accumulation with interest payments. The crisis hits hardest among vulnerable groups relying on social grants, where electricity price increases effectively cancel out any grant adjustments.

Practical Solutions for Financial Survival

Van der Poel recommends a multi-pronged approach to manage the crisis:

1. Strict Budgeting

Creating detailed monthly budgets helps identify unnecessary expenses and potential savings areas.

2. Smart Shopping

Consumers should actively seek discounts, compare prices, and plan purchases around specials.

3. Credit Card Caution

Limit credit card use to genuine emergencies only to avoid compounding debt problems.

Source: BusinessTech