NCR Warns Over 10 Million South Africans Are Over-Indebted as Black Friday Tempts Impulsive Spending
As Black Friday kicks off today , the National Credit Regulator (NCR) has sounded the alarm on South Africa’s growing debt crisis, revealing that more than 10 million people are already over-indebted. With shoppers gearing up for massive discounts, the regulator is urging everyone to think twice before splashing out, warning that flashy deals could lead to long-term financial pain.
This comes at a time when high interest rates are making it tougher for families to keep up with payments, pushing many deeper into trouble. Ahead of the festive season, experts say Black Friday is no longer just about grabbing luxuries—it’s become a survival tactic for cash-strapped households, but one that often backfires.
The NCR’s latest figures paint a worrying picture of the nation’s finances, showing how easy it is to slip into debt in a tough economy. As consumers face rising costs for basics like food and fuel, the lure of sales could add even more strain. By sharing real tips and stats, the regulator hopes to help people avoid the pitfalls of overspending and focus on building a secure future instead.
Shocking Stats Highlight Widespread Debt Struggles
The NCR’s data shows a stark reality: over 10 million South Africans are juggling debts they can’t handle, with 36% of the population having three to five credit accounts in arrears. This means millions are falling behind on loans, credit cards, and store accounts, often leading to stress and sleepless nights. High interest rates have made things worse, with consumers now paying almost R100 billion more each year to service their debts compared to 2019.
Alfred Matsimbi from the NCR explained that marketers play on people’s fear of missing out, or FOMO, to drive sales. “Everybody’s rushing to the shopping malls and they are buying. Many of us will end up buying things that we really don’t need. So, that’s the biggest mistake of buying things that we do not really need,” he said. This rush creates psychological pressure, making it hard to resist deals that seem too good to pass up.
In recent years, Black Friday has shifted from a day of fun splurges to a necessity for many families trying to stretch their budgets. A new survey highlights how cash-strapped shoppers are using the sales to stock up on essentials, but this often leads to relying on credit. With online shopping booming—expected to break records in 2025—it’s easier than ever to overspend from the comfort of home.
The Hidden Dangers of Festive Overspending
Matsimbi warned that the excitement of Black Friday can quickly turn into regret, especially as the festive season ramps up. “We are all flocking to the shops, the crowds, they are flocking. And unfortunately, it hits us psychologically. And unfortunately, overspending, reckless spending is at the doorstep. You’ll end up being over-indebted,” he added.
Debt experts echo this, saying the shopping frenzy could push already stressed consumers further into the red. Many end up turning to micro-lenders in January when bills pile up and salaries run dry. “And after that, January, when it comes on the 5th of January, we have to go back to work. Unfortunately, many of us will have to go back to the machine, the banks, micro lenders,” Matsimbi noted.
This cycle of borrowing to cover spending sprees leads to what some call “Debt December regrets.” With interest rates staying high, even small purchases on credit can snowball into big problems. The NCR points out that while it’s fine to enjoy the holidays and treat yourself, protecting your financial health should come first.
NCR’s Advice: Choose Peace of Mind Over Pressure
To help shoppers stay smart, the NCR is pushing a simple message: prioritise peace of mind over the urge to spend. Matsimbi stressed that while spoiling yourself during the festive season is okay, your long-term financial future matters more. “The NCR is advising consumers to prioritise peace of mind over the pressure to spend,” he said.
Practical tips include making a budget before hitting the stores or online sites, sticking to needs over wants, and avoiding credit for non-essentials. The regulator even suggests staying home or offline if the temptation feels too strong— a “stay home, stay offline” approach to dodge the hype.
For those already in debt, the NCR recommends seeking help early through debt counselling or free advice services. This can prevent things from getting worse and help rebuild credit scores over time. By planning ahead for January’s bills, like school fees and rent, shoppers can enjoy the holidays without the hangover of regret.
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