Middle-class South Africans are grappling with worsening financial strain, as rising living expenses and stagnant incomes erode household finances. A Standard Bank analysis of over 402,000 salary earners shows that almost half have less than R1,000 or are in overdraft by payday, reflecting the growing challenge of balancing income and living costs. Specifically, 21% had R1,000 or less in their accounts the day before payday, while 28% were in the red or reliant on overdraft facilities. The problem extends across income brackets, with even private banking clients experiencing financial stress.

Several factors exacerbate these challenges. Utility costs have surged, with a study by PowerOptimal noting that water and electricity prices have risen by 2,100% and 1,710% since 1996, far outpacing inflation. Housing and transportation costs have also soared, placing added strain on middle-income households. The average home price, once R160,113 in 1994 (around R836,627 adjusted for inflation), has climbed to R1,458,924 in 2024, an 811% increase. Similarly, the cost of a new car has grown 744% since 1994, with average prices reaching R392,174 in early 2024.

According to DebtBusters, middle-income earners with take-home pay above R20,000 now face a debt-to-income ratio of 127%, largely driven by home loans and vehicle finance. This data highlights a cycle of financial insecurity, with many middle-class households reliant on credit to cover monthly expenses. While financial literacy initiatives may help, the rising costs of essential goods and services continue to outstrip wage growth, pushing many into a precarious financial position.