Debt and stress overshadow Black Friday in SA

MAXED-OUT credit cards, late payments, and a deepening debt crisis are just some of the financial issues plaguing South African consumers as they approach Black Friday; not with wishlists, but with worries.

Black Friday, the day after Thanksgiving in the United States, marks the start of the festive shopping season, a phenomenon that has spread globally. But in South Africa, most consumers’ finances remain in the red, not black, leaving little room for splurges this year.

The situation is so dire that the National Credit Regulator (NCR) has issued warnings urging consumers to “stay home, stay offline” if they haven’t planned for the spending period. “Don’t let Black Friday and Cyber Monday lead to blacklisting,” the NCR advises in messages circulated in multiple languages.

Rising food costs, persistent unemployment, and steadily increasing utility bills mean shoppers are likely to focus on essentials rather than luxuries.

Debt counsellors report that, despite a few recent interest rate cuts, including a 25-basis-point cut this week, many South Africans are still struggling to keep the wolf from the door. 

Annaline van der Poel of Debt Rescue says they are seeing record numbers of consumers grappling with debt.

“This Black Friday, people will be hunting for grocery specials, school uniform and stationery discounts, and other everyday necessities,” she says. “Black Friday is no longer just about luxuries. Consumers are planning ahead to stock up where it benefits them.”

Van der Poel adds that given the country’s high levels of indebtedness, consumers are now more price-conscious and deliberate with spending.

“There’s a bigger dependence on short-term credit, particularly on existing facilities like credit and store cards. We’re also seeing a surge in personal loans, especially payday loans. People are borrowing just to get through the month and put food on the table.”

The scale of the debt struggle is massive. 

StatsSA said that in September this year, 31 818 civil summonses were issued for debt, with 9 779 judgments amounting to R304.4 million. The largest contributors to the total value of judgments were “other” debts (R72.2 million), money lent (R65.7 million), services (R63.6 million), and promissory notes (R53.8 million).

TransUnion’s Q3 2025 Consumer Pulse Study reveals that while 75% of consumers expected their income to increase, 36% anticipated being unable to pay their current bills or loans in full. Rising costs for groceries (82%), utilities (60%), fuel (52%), and medical care (52%) are driving these concerns. 

TransUnion also revealed that age also affects financial habits: nearly half of Gen Z (48%) and Millennials (43%) reported they will apply for new credit or refinance existing credit in the next year, compared with lower intent among Gen X and Baby Boomers. Younger generations also lead in using “buy now, pay later” services.

Despite the bleak financial outlook, many South Africans are still looking forward to Black Friday, with some retailers already offering price cuts. However, experts warn that mounting debt can have severe mental health consequences.

The South African Depression and Anxiety Group (SADAG) reports that calls to its hotline have risen, fueled in part by financial stress. 

Momentum Financial Planning highlights a “significant link” between personal finances and mental well-being. The company’s JJ van Wyk, a financial advisor said, “Having a financial cushion reduces the constant background hum of worry, leading to less stress and greater peace of mind. Conversely, persistent unsecured debt creates a crushing psychological burden. It is strongly associated with higher rates of depression, anxiety, and even suicide. Individuals struggling with debt are up to three times more likely to experience a mental health condition. The stress of debt can affect sleep, concentration, and relationships, creating a vicious cycle where poor mental health makes sound financial decisions even harder.”

Meanwhile, personal finance organisation JustMoney warns Black Friday shoppers to be cautious online. 

Its survey, Money & Me, found that 50% of respondents had been scammed at least once. Sarah Nicholson, Head of Customer Experience at JustMoney said, “As excitement builds and spending ramps up, criminals exploit limited-time offers, cloned websites, phishing, and other ploys. Black Friday can help you save, but only if you plan carefully and act to stay ahead of scammers.” She recommends avoiding fake online stores, ignoring suspicious SMS or WhatsApp discount links, using official shopping apps rather than websites, and stopping card use immediately if fraud is suspected.