The rising cost of living forces us to relook at our monthly budgets.
While some adjustments could be as easy as cutting down on buying coffee or getting take-aways every week, there are more serious decisions that need to be made to ensure that your bond, car, insurance and school fees are paid without fail.
These decisions, as important as they are, should not lead us to a financial crisis in the future.
Skipping a bond repayment or a payment for your car can lead to repossession.
When people look at ways to tighten the belt, many make the wrong decision about what to cut first.
Missing an insurance payment can have serious repercussions.
Insurance companies are urging consumers not to make “short-term cuts that could create long-term financial damage”, as this can affect protecting your loved ones, your income and many other things.
“For many households, salaries are already pre-spent before payday,” says Budget Insurance senior manager Tando Ngibe.
“Rent, transport, debt repayments, groceries and school costs leave little room for error. When shocks such as fuel and electricity increases hit, it becomes tempting to skip or delay what feels non-urgent, but insurance should never be one of them.
“Now is the time for financial discipline, not financial drift,” says Ngibe. “Consumers need to be brutally honest about what is essential right now. Insurance is not a luxury line item; it is a financial safety net.
“If your car gets written off, your home is damaged, or your family loses an income provider, the cost of replacing that protection out of pocket is simply unaffordable for most households. Staying covered is one of the smartest financial decisions you can make in a difficult month.”
1Life’s Truth About Money facilitator and money coach Hayley Parry warns against panic decisions.
“When the cost-of-living spikes overnight, people understandably look for anything they can cut,” she says.
“But cancelling or missing an insurance premium to get through the month can expose you to a much bigger financial crisis next month.
“One accident, one burglary, one unexpected loss, and a family can be set back by years. In tough times, protection matters even more.”
How many times have you heard people say they cancelled their premium and then something bad happened? Don’t let this be you.
“The financial wins many households hoped for in 2026 are being eroded by global shocks and local structural costs,” says Parry.
“Consumers cannot control the fuel price or electricity tariffs, but they can control how intentionally they respond. Protect what matters first.”
Ngibe adds that these turbulent times call for smart choices, not panic.
“Keep the cover that protects your family from financial disaster — being insured is not just responsible; it’s resilient.”
FNB Customer Debt Solutions head Patricia Temba warns against entering debt review hastily.
“While such pressure [rising costs] may feel like a tipping point for many consumers, they should avoid hastily entering legal processes like debt review out of fear, despite suggestions that formal debt intervention is the logical next step to save consumers from an impending financial crisis.
“Unfortunately, life happens,” says Temba.
“And costs sometimes go up rapidly and unexpectedly. But that doesn’t mean you should act too quickly. Rushing, without fully understanding the implications of going into debt review, can create longer-term consequences that are too difficult to reverse.”
Temba says rising fuel prices will place real financial pressure on South African households.
“But rushing into debt review without fully understanding the implications can limit your financial flexibility for years to come. Your first call should be to your bank, not your last resort.
“There is support available, and in many cases, it starts with a conversation. Financial resilience isn’t about avoiding pressure altogether; it’s about responding to it in a way that protects your future, not just your present.”
Sidebar
FNB urges consumers to explore these five things before entering debt review:
Don’t assume you’re out of options: Debt review is designed for consumers who are severely over-indebted, not for short-term financial pressure. While the legal process called debt review has an important role to play, it’s not a quick fix. It can affect your ability to access credit in future and should only be considered once all other options have been explored.
Speak to your bank early: One of the biggest mistakes consumers make is waiting until they’ve already missed making payments on their loans or credit facility. The earlier you reach out to your bank, the more flexibility you have. A simple conversation with your bank can open up solutions that prevent the situation from escalating.
Explore payment arrangements: If your budget is temporarily under pressure, there may be ways to adjust your repayments. In many cases, your bank can structure payment arrangements that reflect your current affordability. This helps customers stay on track without immediately entering formal processes.
Consider consolidating your debt: Multiple repayments across different accounts can become difficult to manage when costs rise. Debt consolidation can simplify your finances into a single, more manageable repayment. It’s often a practical step before considering more serious interventions.
Treat this as a moment to reset your budget, not panic: Fuel price increases are often cyclical, even when driven by global events. This means they will eventually level out. Short-term financial pressure can make urgent decisions feel necessary. But not every disruption requires a permanent solution. It’s important to respond proportionately and avoid locking yourself into decisions that limit your flexibility in the future.
