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Following today’s decision by the South African Reserve Bank’s Monetary Policy Committee (MPC), the latest data from TransUnion points to a consumer environment that remains fragile, with many households continuing to navigate mounting financial pressure.

While some improvement in repayment behaviour was observed toward the end of 2025, this stability is proving short-lived. Rising living costs, increasing reliance on credit, and limited financial buffers mean that many consumers are entering 2026 in a vulnerable position, with little capacity to absorb additional economic shocks.

The decision to leave interest rates unchanged may offer a sense of short-term stability, but it does little to ease the underlying financial strain facing households.

“Stable rates do not translate into financial relief for most consumers,” says Fatgie Adams, Head of Credit Risk Solutions at TransUnion. “Many households are already under pressure, and upcoming increases in fuel and food costs are likely to erode any temporary stability created by a hold decision.”

Insights from the TransUnion Q4 2025 Consumer Pulse Study (CPS) show that households have already begun adjusting their behaviour in response to financial stress. More than half of consumers report cutting discretionary spending, while a significant portion have reduced clothing purchases, delayed major expenses, and scaled back on services such as subscriptions and digital platforms. At the same time, the study indicates a growing reliance on credit, with a notable share of consumers using credit to manage shortfalls in their monthly budgets.

This behavioural shift is reinforced by credit performance trends from the TransUnion Q4 2025 Industry Insights Report (IIR), which highlights continued strain in key segments. Credit card delinquency remains elevated at 17.4% (balance-level), while non-bank personal loan delinquency is critically high at 53.4% (consumer-level). These figures highlight deep vulnerability among financially stretched consumers, with short-term credit products showing the most acute distress. Although home loan delinquency remains relatively stable at 7.5%, it is still elevated, pointing to persistent pressure even within more structured credit product.

“Consumers may appear stable on the surface, but in reality, many are already in a form of financial triage,” Adams adds. “A flat rate environment simply provides time to prepare, it does not remove the pressure.”

With fuel prices expected to rise sharply in the coming months and food costs remaining persistently high, the overall cost of living is likely to increase further, placing additional strain on already stretched household budgets.

Regardless of the outcome, the broader picture remains one of rising pressure on household finances. The combination of higher living costs, constrained income growth and existing debt obligations means that many consumers will need to navigate the months ahead with increased caution.

Maintaining a clear view of essential expenses, staying on top of repayments, and making considered financial decisions will be critical as cost pressures continue to build.