A new report from Statistics South Africa shows that the total number of civil summonses issued for debt fell by 7.4% in the three months to August 2025 compared with the same period in 2024. The number of civil judgments recorded for debt also declined by 8.7% over the same period, suggesting a modest drop in the number of formal legal actions being taken against consumers and companies.

However, the total value of civil judgments increased by 7.7% year-on-year, indicating that while fewer cases reached court, the average size of debts being pursued has grown.

This suggests that households and businesses that do fall into arrears are facing larger financial obligations than before, pointing to deeper levels of indebtedness.

Amidst high unemployment and sluggish economic growth, household incomes and consumer spending have come under increasing pressure. Data from other economic indicators show that wage growth has failed to keep pace with inflation, eroding purchasing power.

At the same time, access to credit has tightened as banks adopt more cautious lending standards in response to rising default risks.

Economists say the pattern of fewer debt cases but higher judgment values reflects a strained middle class increasingly reliant on credit to cover basic expenses.

The trend underscores how limited job creation, stagnant growth, and high borrowing costs continue to weigh on South Africa’s already fragile consumer environment.