11/06/2026
South Africa is facing a sharp rise in personal loan defaults, with more households struggling to keep up with repayments in the face of high living costs, rising interest rates, and widespread unemployment. For many borrowers, loans that once seemed affordable have become unmanageable, leading to missed instalments and growing arrears. Defaulting not only affects individuals but also places additional strain on families and communities, while damaging credit scores and limiting future borrowing options.
