Buy Now, Pay Later Grows as Debt Levels Hit Record Highs

The latest DebtBusters Debt Index for the third quarter of 2025 paints a concerning picture of South African consumer health. The report indicates that consumers entering debt counselling are now spending, on average, 70 cents of every Rand they earn just to service their debt obligations.

This severe financial strain is driving a rapid expansion in the 'Buy Now, Pay Later' (BNPL) sector. While BNPL offers short-term liquidity, experts warn that it can easily lead to a debt spiral if not managed carefully. The National Credit Regulator is closely monitoring this sector to ensuring that these products do not bypass the affordability assessment requirements of the National Credit Act.

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**Related:** - Find a debt counsellor if you're over-indebted - Understanding the debt review process - Read the National Credit Act