14 August 2026
Over the past decade, South Africa’s cost of living has soared, and households everywhere are feeling the strain. High living costs, coupled with various economic pressures, continue to make it financially challenging for consumers to make ends meet on their salaries. Families, consumers and workers are struggling, ending up highly indebted and spending a large portion of their income on debt repayments.
For UASA, this outlook paints a gloomy picture for consumers. That is why we remind UASA members about UASA Financial Services (UFS), which is available to assist them with their financial needs, plans, and goals.
In this blog, UASA explains some financial warning signs to watch for before you sink into financial difficulty. Learning to recognise these key tipping points allows you to act quickly before things get worse. Here is what to watch for:
Surviving on an overdraft – An overdraft can be a useful tool, but it should not be relied on to get you through the month, every month. If you find yourself doing this, it’s a sign your expenses may be outstripping your income, and it’s time to cut back.
Buying essentials on credit – If you are relying on credit to pay for everyday items like groceries, that is another sign you are overspending. Online shopping has quickly become the norm, but you still need to keep a close eye on your funds and pay off your credit card balance in full every month to avoid interest charges.
Late payments – There is a reason landlords expect you to pay rent on time. Late payments are a classic sign of financial strain because your cash flow is insufficient to cover all your obligations at once. Repeated late payments lead to extra charges and even service cancellations. Take a closer look at your budget so you can make your payments on time and avoid damaging your credit score.
Financial stress – There is no stress quite like money stress. If you are ignoring your banking app, avoiding conversations with your spouse, or screening your calls to dodge creditors, that’s a sign it’s gone too far. Put your mental health first and take charge of your finances again.
Surviving on loans – Taking out a loan can feel like the answer to your cash flow problems, but piling on more debt when you are already struggling to keep up with your current payments is asking for trouble. It’s time to take urgent action.
If your expenses consistently outstrip your income, or you are unable to make your loan payments while also covering essentials, you may be over-indebted and could qualify for debt review. This is a legal process that protects you from having your assets repossessed and provides for an extended repayment plan with affordable monthly instalments.
If you find yourself in need of financial assistance, contact UASA to find out how UFS can help you get back on track and reach your financial goals.
Ref: www.debtrescue.co.za www.uasa.org.za www.uasa.co.za/ufs/