Explore how South African families are increasingly using debt not just for survival, but as a means to secure educational opportunities for their children amidst rising costs.
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For many South African families, debt is no longer simply a tool for survival. It is increasingly being used to secure opportunities.
A friend recently told me she had taken out a student loan so her son could complete his studies. It was not a decision driven by extravagance, but by necessity. Without credit, his education would stall.
That reality is playing out across the country.
According to the Atlas Finance Statistical Review for April to December 2025, education-related borrowing accounts for 22% of total loan applications, making it the biggest reason consumers are taking out short-term loans.
Atlas Finance director Brett Caminsky says consumers are increasingly viewing credit as a way to improve their long-term prospects rather than simply cover emergencies.
“Credit should be used for things that shape your future, not just keep households afloat. We are seeing a clear shift toward ‘credit for good’, using loans to ensure individuals and families put themselves in a better situation tomorrow than they are in today,” he says.
Caminsky says education has emerged as the clearest example of this trend.
“Consumers are proactively using credit to cover university registrations, school fees, and the rising costs of uniforms and study materials,” he says.
“For many, a loan isn’t just about liquidity; it’s an investment in a child’s future, ensuring they don’t miss an academic milestone or a graduation due to temporary cash flow constraints.”
The shift reflects the harsh financial realities facing households. The latest Cost of Living Report by the Competition Commission shows that since 2020, primary education costs have risen by 37%, while secondary education costs are up 42%. Electricity prices have surged by 85%.
At the same time, the latest TransUnion Q1 2026 Consumer Pulse Study finds that consumers are becoming more deliberate in how they spend and borrow, prioritising essentials and future-focused expenses over discretionary purchases.
What stands out is that South Africans are not borrowing for luxury. They are borrowing to stay employable and keep their children in school.
Caminsky says customers are also using loans for transport, car repairs, and interview-related costs.
“Short-term credit is increasingly seen as an enabler of progress rather than something to be demonised,” he says.
“While responsible borrowing remains essential, the reality is that South Africans are using credit as a practical tool for resilience and upward mobility.”
There is truth in that argument. For many families, access to credit can mean the difference between a student graduating or dropping out, or a worker keeping a job instead of losing it because they cannot afford transport.
But there is also something deeply uncomfortable about a society where opportunity increasingly depends on debt.
Education has long been viewed as one of the most reliable ways for families to improve their circumstances, and many South Africans are clearly prepared to make sacrifices to protect that opportunity. In an environment where costs continue to rise faster than incomes, credit is increasingly helping households manage those pressures while still investing in long-term goals.
Used responsibly, credit can provide flexibility at critical moments, whether it is helping a student stay enrolled, covering transport to work, or easing temporary financial strain. For many families, it has become a practical tool that allows them to continue building toward a more stable future despite a difficult economic climate.
The fact that so many South Africans are willing to take on debt for education says something important about the country. Despite economic strain, families still believe that qualifications and skills remain the best route to stability.
The problem is that the cost of chasing that belief is becoming increasingly expensive.
PERSONAL FINANCE