Black tax pushing working South Africans into debt trap

Income-earning Black South Africans are increasingly falling into debt as they shoulder the financial burden of supporting extended family members.

Debt counsellor Samantha Moyana said Black tax is a significant contributor to rising personal debt.

She described it as the financial pressure on employed individuals to support less affluent relatives.

Cultural pressure and financial strain

Moyana said the expectation is rooted in traditional values of family support.

“You know, when you are independent, and you are the one working, we have this thing of believing that you also have to assist your family members.”

But she warned that without limits, this support can become overwhelming.

“Sometimes there are no boundaries… You end up taking a lot of load that you find yourself over-indebted.”

Many feel obligated to give back, especially if their family contributed to their success.

“You’ll always have that guilt… now you feel obligated that you need to assist your family members.”

Debt taken on for others

Moyana said many consumers report being over-indebted because they support entire households beyond their own.

Some are paying for school fees, housing, clothing and daily expenses for multiple relatives.

Others take out loans or open clothing accounts to meet these demands.

“You have to take out a loan… or you’re having clothing accounts because you don’t have enough money to purchase clothing cash.”

This creates a cycle where debt is used not for personal needs but to support others.

The risk to credit records

Even when debt is taken for the family, the legal responsibility remains with the borrower.

“You are the one applying for it… Your name is written down,” Moyana said.

Failure to repay affects the individual’s credit profile, not the family members who benefited.

“Your name is going to be affected… you’ll be the one having a bad credit record.”

Different money personalities at play

Moyana identified several behavioural patterns that shape how people respond to Black tax:

-The rescuer, who feels responsible for fixing others’ finances

-The people pleaser, who struggles to say no

-The empath, who cannot separate need from dependence

-The provider, who measures success by how much they give

She said these patterns often lead to stress, anxiety and resentment.

“You cannot go to a store and purchase that bag… because your family is going to judge you.”

Legal pressure can add to the burden

In some cases, financial support extends beyond cultural expectation into legal obligation.

Moyana said the Maintenance Act allows courts to order support for family members as a last resort.

This can include siblings if no closer relatives can assist.

Setting boundaries is critical

Moyana urged income earners to set clear financial limits.

“It’s very important to set clear limits on what you can afford.”

She advised defining a fixed monthly amount and sticking to a budget.

Crucially, she warned against using credit to support others.

“Funding support through loans… can quickly compound into long-term debt.”

Open communication with family is also key.

“Be transparent… this is how much I can afford.”

Think before committing

Moyana said people should avoid making emotional or impulsive decisions when asked for help.

“Rather, think about it thoroughly before you make that decision.”

She stressed that affordability must come first.

“If your affordability is not allowing you to do so, don’t do it… You’re going to be the one drowning in the cycle of debt.”

Her message was clear: helping family should not come at the cost of financial survival.

Related

Black tax pressures mount for working South Africans. For many employed South Africans, Black tax has become a regular financial obligation, often compared to monthly expenses like insurance or a phone bill.

For more information, listen to Moyana on CapeTalk using the audio player below: