Strategic borrowing emerges as a tool for progress in a high cost-of-living environment
South Africans are increasingly utilising short-term credit as a strategic tool to invest in their futures, moving beyond mere survival to ensure long-term stability.
According to Atlas Finance Director, Brett Caminsky, recent customer insights reveal that loans are playing a critical role in helping families navigate a high-cost environment while prioritising investments that improve their circumstances.
“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,” says Caminsky.
The education driver
Education has emerged as the primary driver for strategic borrowing. According to the Atlas Finance Statistical Review for April – December 2025, loans taken specifically for the purpose of education accounted for 22% of total applications.
“Education comes out clearly as a leading driver. Consumers are proactively using credit to cover university registrations, school fees, and the rising costs of uniforms and study materials,” says Caminsky. “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.”
A shift in consumer behaviour
This trend aligns with broader market data. The TransUnion Q1 2026 Consumer Pulse Study highlights that South Africans are becoming more “deliberate and grounded” in their financial choices. The study notes that consumers are increasingly prioritising essential and future-oriented expenses while remaining selective in discretionary areas.
This resilience is particularly notable given the economic pressures highlighted in the latest Cost of Living Report by the Competition Commission, which notes that since 2020:
- Primary education costs have increased by 37%.
- Secondary education costs have risen by 42%.
- Electricity prices have surged by 85%.
While essential costs like utilities and food continue to outpace inflation, the data shows that consumers are prioritising opportunity over mere consumption.
Credit as an enabler
Caminsky says the insights point to a broader reliance on credit to enable economic participation and personal development. Beyond education, customers are using loans to fund transport, car repairs, and interview-related costs, tools that directly help them access or retain employment.
“Together, these insights point to a shifting narrative. As the TransUnion data suggests, consumers are making deliberate trade-offs to stay on top of obligations and build resilience. On our end short-term credit is increasingly seen as an enabler of progress rather than something to be demonised,” Caminsky adds.
“While responsible borrowing remains essential, the reality is that South Africans are using credit as a practical tool for resilience and upward mobility. By securing an education or maintaining the means to work, our customers are using credit to shape their futures and build a bridge to a better financial situation,” he concludes.
