People earning over R600,000 a year are in trouble in South Africa

• People earning over R600,000 a year are in trouble in South Africa because their debt repayments now exceed their monthly income.
• The trend is attributed to increased lending to higher-income consumers since the Covid-19 pandemic, with these individuals requiring 103% of their income to service their debt.
• The situation highlights the growing divide between higher- and lower-income consumers, with experts warning that it could lead to a surge in informal lending and further financial struggles for those already struggling.