What You Can Do About It
The 2025 Budget Speech has introduced major financial changes that could affect your wallet, your cost of living, and how you manage your debt. With rising expenses, it’s crucial to plan ahead so you don’t find yourself drowning in debt.
What you need to Know...
And how to stay financially secure.
VAT Increase - Everyday Costs Are Going Up.
📌 How this affects you:
Starting May 2025, Value Added Tax (VAT) will rise from 15% to 15.5%, and by 2026, it will increase again to 16%.

📌 How this affects you:
- Essentials like groceries, electricity, and household items will cost more.
- Services such as car repairs, haircuts, and medical visits will become pricier.
- If you’re already struggling with expenses, this could make things even harder.
💡 What you can do: Review your budget now and adjust for the higher costs. If debt is overwhelming you, reach out to us before it’s too late.
Higher Transport Costs
With VAT increasing, fuel prices are expected to climb, affecting transport costs.
📌 What this means for you:
- Petrol and diesel could become more expensive, increasing commuting costs.
- Taxi and bus fares may go up, making it pricier to get to work or school.
- Businesses will pass on higher transport costs, leading to more expensive goods.
💡 What you can do: Save on transport by carpooling, using public transport wisely, or planning trips efficiently.
Debt Repayments Will be Tougher
As expenses increase, you might find it harder to keep up with your debt repayments on loans, credit cards, and store accounts.
📌 Why this matters:
- More of your salary will go toward necessities, leaving less for debt payments.
- Missing a debt payment could lead to legal action from creditors.
- Many people overspend in December—avoid this common financial pitfall.
💡 What you can do: If you’re feeling overwhelmed by debt, act now. We can help lower your monthly repayments and protect your assets.
Rising Costs in Food, Healthcare, and Education
The VAT hike and inflation will make essential services more expensive.
📌 What to expect:
- Grocery prices will increase, even though basic food items (like maize meal) remain VAT-free.
- Public healthcare will receive more funding, but private healthcare costs may still rise.
- A new compulsory school year for young children could mean additional financial pressure for parents.
- 💡 What you can do: Prioritize essential expenses and cut down on luxury spending. If you have children, start planning now for upcoming school costs.
Social Grants
Will They Keep Up?
The R350 COVID-19 grant will continue until 2026, but overall social grant increases may not be enough to match the rising cost of living.
📌 What this means for you:
- If you rely on a grant, it may not stretch as far as it used to.
- Higher living costs will require careful budgeting.
Take Control of Your Finances Now
With these financial changes ahead, now is the time to take charge of your money and avoid unnecessary debt.
✅ Check your budget
Identify where you can cut non-essential expenses.
✅ Avoid new debt
This is not the time to take out more loans or credit
✅ Think ahead
Prices are going up, so start saving where you can.
✅ Get debt help early
If you’re struggling, we can assist in lowering your monthly payments and preventing financial hardship.