In a recent interview with SABC News, Anneline van der Poel, COO at Debt Rescue, painted a sobering picture of South Africa’s deepening financial distress.
Drawing from the latest Debt Rescue survey, she revealed how ordinary consumers are already cutting back on food and transport to keep the lights on — and this was before the 12.7% electricity tariff hike came into effect.
“It’s been absolutely shocking to see the choices consumers are having to make,” she said.
The survey reflects a stark reality: the cost of living is rising faster than incomes, and the poorest households are being pushed into desperate corners. Fixed fees on electricity have soared, with some low-income households paying up to 20% more for using under 600 units.
Van der Poel also warned about the wider impact of the proposed VAT increase, which she described as “terrible” for all consumers. “There’s nobody who’s being exempted from this” she said, noting how narrow the current basket of VAT-exempt items is. While government communications speak of a 0.5% hike, van der Poel clarified that the effective impact on consumers is closer to 3% when you calculate the increase from 15% to 15.5%.
She warns virtually everything we purchase is going to cost more — especially food, which is already climbing due to other economic pressures. She stressed that these compounding costs are devastating for households that are already struggling to survive, further shrinking what little purchasing power remains.
This is a must-watch interview for every South African trying to make ends meet.
