Keshnie July, Lending Product Owner; and Lehlogonolo Ramushu, Credit Risk Consultant; at Investec

According to Keshnie and Lehlogonolo, the transition into adulthood is already difficult. For the first time, young professionals must juggle rent, transport, groceries, data, insurance and unexpected expenses, often without much financial literacy to guide them. Layered on top comes a powerful emotional and social pressure: to look successful, to support family, to “arrive” and to match the lifestyles seen online or among peers.

But the real danger lies in the ease of obtaining credit. With just a few clicks, you can access an overdraft, a credit card or a personal loan. Social media is filled with ads promising “quick”, “easy”, even “risk-free” applications. For someone new to managing money, it’s easy to miss the fine print and assume all credit is equal.

And then comes the myth that accelerates the problem: “You need to take on debt to build a credit profile.” While there is some truth to this, young people often interpret it as permission to take on whatever credit is offered, without understanding the long-term implications.

How much debt is too much?

One of the episode’s most striking points is how quickly small choices accumulate. A R200 clothing-store purchase can become a R500 repayment. A R7 000 loan can become R14 000 over time. “That new gadget on a buy-now-pay-later plan feels manageable in four instalments, until five of those deals add up and your monthly cash flow becomes restricted.”

What looks manageable in isolation becomes overwhelming in combination.

The experts warn that the moment you reach month-end with no surplus, you’re already in danger. If you can’t cover an emergency (like a burst tyre, medical copayment or a broken phone) without borrowing more, your financial stability is already compromised. Once borrowing becomes a cycle, it’s difficult to escape.

Marketing the debt trap

Modern financial marketing is smart, very smart. Young professionals scrolling TikTok or Instagram are specifically targeted with language crafted to lower their guard: instant approval, fast payouts, no risk, low monthly instalments. What often goes unseen are the high interest rates, additional fees, insurance add-ons or balloon payments that make an affordable purchase dramatically more expensive.

This is especially true with vehicles. A car may be marketed with a low monthly instalment, but a balloon payment (often 30% to 40% of the purchase price) waits for you at the end of the term. Many people only realise this years later, forced to refinance or trade in the car, trapping themselves in perpetual debt.

The credit profile no one talks about: Money behaviours

When a bank assesses you, they look far beyond your income. They examine your money behaviours; how you use credit, how consistently you pay, how much you rely on short-term loans and how often you apply for new products. Maxed-out store cards or repeated loan applications signal financial strain, even if you’ve never missed a payment.

This is why unsecured credit (loans without assets behind them) can be so damaging. Overreliance on overdrafts, store cards or buy-now-pay-later deals can make it harder to qualify for meaningful long-term debt such as a home loan.

As Lehlogonolo explains, your credit record is essentially your financial report card. The consequences of early missteps follow you for years.

So, what is good debt?

Not all debt is created equal. The experts agree that certain types of borrowing can support a stronger future (the good debt):

• Education that increases earning potential
• A home, which typically appreciates in value
• Business financing that can generate long-term income

Debt becomes “good” when it builds assets, not when it funds lifestyle pressure.

The path forward for young professionals

The most powerful message from the conversation is that financial stability is built on awareness, not income. A realistic monthly budget, discipline around spending and a willingness to question tempting offers can protect young professionals from long-term strain and the debt trap.

When trouble does arise, the worst thing to do is hide. Avoiding calls, ignoring statements or hoping it will go away simply deepens the crisis. Speaking to your bank early can open the door to restructuring or practical support before the situation becomes unmanageable.

ENDS