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• Half (50%) of South Africans said their household finances were better than planned at this point in 2026, up from 43% in Q2 2026.
• 79% expect their household income to increase over the next year, up from 75% a year ago.
• 43% plan to apply for new credit or refinance existing products, while 58% believe they would be approved if they needed access to credit.

South African consumers reported improved optimism in their household finances during the third quarter. While concerns about inflation remain widespread, findings from TransUnion’s Q3 2026 South Africa Consumer Pulse Study suggest consumers are becoming more deliberate in how they borrow, spend and manage their money.  

Household financial performance strengthened and income expectations remained positive. At the same time, South Africans continue to face ongoing economic pressures, indicating that consumers are balancing improving financial sentiment with careful financial decision making.

Half (50%) of South Africans said their household finances were better than planned at this point in 2026, up from 43% in Q2 2026. Meanwhile, the proportion of consumers who said their finances were worse than planned fell to 34%, down from 38% one year ago. Financial optimism also improved with 73% of consumers expressing optimism about their household finances in the next 12 months, compared with 68% a year ago.

Improvements in reported household finances and future income expectations were accompanied by positive income trends. More than four in ten consumers (41%) reported an increase in household income over the last three months, while only 16% experienced a decline. Looking ahead, nearly eight in ten consumers (79%) expect their income to increase over the coming year, up from 75% a year ago.

According to Ayesha Hatea, director of research and consulting at TransUnion Africa, the findings indicate that consumers are reporting stronger household financial outlooks and income expectations, while remaining mindful of ongoing economic pressures.

“What stands out this quarter is that consumers appear to be taking a more considered approach to managing their finances. The findings indicate that consumers are paying close attention to their household budgets, inflation, borrowing costs and spending habits.  While many report improved household finances and income expectations, affordability and cost-of-living concerns remain an important consideration.”

Despite improved financial sentiment, South Africans remain acutely aware of ongoing cost-of-living pressures. Almost all respondents (97%) said they remain concerned about inflation, while 79% ranked inflation for everyday goods among the top three concerns affecting their household finances for the next six months. Although more consumers now feel their income is keeping pace with inflation, the cost of living continues to place pressure on household budgets.

The study found that 43% of consumers plan to apply for new credit or refinance existing products over the next year, up from 38% a year ago, while 58% believe they would be approved if they needed access to credit, up from 49% a year ago. Perception of access to credit has improved, with 51% saying they have sufficient access to credit products, up from 42% a year ago.

Consumers are, however, approaching borrowing more selectively. More than half (52%) considered applying for new credit or refinancing but ultimately chose not to proceed, up from 42% a year ago. Among these consumers, the cost of credit was the leading reason for not proceeding, according to 34% of those surveyed. More than nine in ten (92%) said rising interest rates affect whether they will apply for credit in the next 12 months. While these findings were captured before the South African Reserve Bank increased the repo rate by 25 basis points to 7.25%, they highlight that borrowing costs were already a significant consideration for consumers and may become an even more important factor in credit decision-making going forward.

“Consumers are demonstrating a more measured approach to borrowing. Rather than simply seeking access to credit, many are carefully evaluating whether a product meets their financial needs and circumstances. This creates an opportunity for lenders to align products, pricing and experiences more closely with evolving consumer expectations,” said Hatea.

Demand for credit remains broad-based, with the greatest proportion of consumers planning to apply for a new credit card (33%), a new car loan or lease (27%) or buy now, pay later services (25%). Consumers continue to embrace digital financial services, with nearly half (49%) reporting using websites or apps to send or receive money. With the use of digital financial services comes expectations around speed and convenience, and 86% of consumers said that real-time approval is important when applying for digital loans.

The study also points to signs of improving financial resilience. Fewer consumers expect to miss payments on bills or loans (32%, down four percentage points year-over-year), more said they’re paying down debt faster (34%, compared to 32% a year ago), and nearly one-third reported contributing more to emergency savings or stokvels (31%, up three percentage points year-over-year).

As digital adoption continues to increase, trust and security remain important considerations. Six in ten (60%) reported being targeted by email, online, phone call or text message fraud in the last three months, with 11% saying they fell victim to it. In addition, 29% said they were notified that their personal or account information had been compromised in a data breach in the last three months.

“South Africans continue to operate in a challenging economic environment, but the data points to a consumer that is becoming increasingly informed, resilient and deliberate in their financial choices. While reported household financial outlooks and income expectations have improved, affordability, value and long-term financial sustainability remain important considerations. Understanding these evolving consumer behaviours will be critical for organisations seeking to build trust and deliver products and services that meet consumers’ needs,” concluded Hatea.

Consumers can get their free annual credit report from TransUnion here.