BUSINESS NEWS - Young South Africans entering the workforce are facing mounting financial pressure, with those aged 24 and younger recording the largest increase in financial stress of any age group, according to DebtBusters.

The findings come from the company’s annual Money-Stress Tracker survey, which attracted 18,000 respondents. 

It found that financial stress among the youngest respondents increased by 18% over the past year.

The pressure is also reflected in applications for debt counselling. DebtBusters’ Q2 2026 Debt Index shows that people aged 24 and younger accounted for less than 2% of applications consistently between 2016 and 2024. 

That figure rose to 4% in 2025 before climbing to 9% in 2026.

“This signals that financial stress is affecting South Africans earlier, as they enter adulthood in a much more expensive environment than their slightly older peers,” says Benay Sager, executive head of DebtBusters.

Cost of living takes its toll

After two years in which interest rates dominated financial concerns, inflation and electricity costs have once again emerged as significant sources of anxiety.

These pressures are particularly pronounced among younger and lower-income consumers.

For those aged 24 and younger, the biggest concerns include the rising cost of living and the challenge of paying off monthly debt. Concern about the cost of living increased substantially between 2025 and 2026, while concern about monthly debt repayments remains high.

Interestingly, however, younger consumers are not under the greatest repayment pressure.

The Money-Stress Tracker found that 53% of under-24s spend at least 30% of their take-home income on debt repayments, compared with an overall average of 67%.

Young consumers are taking action

Despite increasing financial stress, the survey suggests younger consumers may be more willing than older age groups to take action to improve their financial situation.

They are 1.5 times more likely to stick to a budget and four times more likely to look for a higher-paying job than consumers aged 55 and older.

Young consumers are also driving a steady increase in subscriptions to online debt-management tools.

Sager says these trends are encouraging, particularly as more young people seek help before financial problems become overwhelming.

“This, and the continued growth in young people applying for debt counselling, is positive,” he says.

“More consumers are taking the opportunity to address debt earlier in their professional lives.”

Financial pressure starts earlier

The findings suggest that financial stress is increasingly becoming a reality for South Africans at the start of their working lives.

While younger consumers may currently carry less debt-repayment pressure than the population overall, rising living costs and growing financial anxiety are prompting more of them to take proactive steps - from budgeting and seeking better-paying jobs to turning to debt counselling.

For a generation starting their careers in an increasingly expensive environment, the message is clear: financial pressure is arriving earlier, but so is the willingness to do something about it.

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