![\"Source:](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/10\/824883-700x364.jpg\")
<\/p>\nSouth African households are running out of easy expenses to cut as rising borrowing costs and soaring fuel prices put mounting pressure on already stretched budgets.<\/p>\n
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Source: Pexels.<\/p>\n
Annual consumer inflation climbed to 4.4% in August, while transport inflation reached 8.8%, adding to the squeeze on consumers.<\/p>\n
The South African Reserve Bank raised the policy rate by 25 basis points in September, pushing the prime lending rate to 10.75%. Motorists faced another blow in October, with petrol prices rising by more than R3 a litre. Stage Zero says households may need to look beyond discretionary spending and reconsider recurring expenses to find more sustainable savings.<\/p>\n
\u201cFor households already trying to absorb higher costs, there is a limit to how much discretionary spending can be cut,\u201d says Abraham van der Merwe, chief executive officer at Stage Zero. \u201cOnce the obvious expenses have been reduced, it becomes worth looking at the larger recurring costs and asking whether some of them can be managed differently.\u201d<\/p>\n
The easy cuts are already happening<\/p>\n
There are signs that many consumers have already worked through some of the most obvious areas of discretionary spending. Recent NielsenIQ research shows that 45% of consumers were cutting spending on food delivery and takeaways. TransUnion\u2019s second-quarter Consumer Pulse Study found that 28% had cancelled subscriptions or memberships.<\/p>\n
Van der Merwe says this creates a difficult next step for households because many of the remaining costs are unavoidable.<\/p>\n \u201cCancelling a subscription can create an immediate saving, but households still need electricity and transport, and they still have debt repayments and other fixed commitments. When those costs rise, families have fewer places left to find meaningful savings,\u201d he says.<\/p>\n The repo rate, petrol price, and regulated electricity tariffs are set outside the household. Grid electricity use leaves more room to act, because households can reduce how much power they need to buy.<\/p>\n Electricity is one recurring cost households can reshape: Electricity prices have risen much faster than general consumer prices for years. Codera Analytics calculates that Eskom\u2019s aggregate standard tariffs have increased by an average of 14.5% a year since 2008, compared with average consumer inflation of about 5% over the same period. By 2026\/27, average electricity prices are more than 10 times their 2008 level, while consumer prices are around 2.5 times higher.<\/p>\n Solar lets households generate electricity during daylight hours and use stored energy later, reducing how much electricity they need to buy from the grid. Moving to solar also does not necessarily require buying the system outright. Stage Zero provides its solar and battery systems through a monthly subscription with no upfront equipment or installation cost.<\/p>\n Van der Merwe says consumers considering subscription-based solar should consider their total spend by combining the monthly solar fee with remaining grid electricity purchases. The system also needs to be sized around the household\u2019s actual electricity use so the customer does not pay for capacity they do not need.<\/p>\n \u201cThe goal should be to leave the household spending less on electricity overall. That starts with getting the system specification right and being clear about what the customer will pay each month. A bigger system is not automatically a better deal if the household cannot make proper use of it,\u201d he says.<\/p>\n Contract terms deserve the same attention. Stage Zero\u2019s residential solar agreements are month-to-month with three months\u2019 notice rather than long-term fixed contracts. Van der Merwe says consumers should also check how annual price increases are handled, what happens if they cancel, and who remains responsible for maintaining and supporting the equipment over time.<\/p>\n \u201cPeople should know what they are signing up for before anything goes onto the roof. Look at the escalation, understand any costs associated with cancelling and make sure the provider will still be there to monitor and support the system after installation,\u201d he says.<\/p>\n Finding savings where there is still room to move: Van der Merwe says reducing the amount of electricity bought from the grid can also give households greater resilience during power interruptions, adding another benefit to the same infrastructure.<\/p>\n \u201cWith higher rates and fuel prices rising sharply, households are going to keep looking for areas where they have more control. Electricity is one of the recurring expenses where changing how the household gets its energy can create that opportunity,\u201d concludes Van der Merwe.<\/p>\n","protected":false},"excerpt":{"rendered":"South African households are running out of easy expenses to cut as rising borrowing costs and soaring fuel…\n","protected":false},"author":2,"featured_media":930353,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-930352","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/930352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=930352"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/930352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/930353"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=930352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=930352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=930352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Fuel](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/10\/824851-120x120.jpg\")
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