Namibian households are tightening their belts, accelerating debt repayments and building emergency savings as persistent cost-of-living pressures force consumers to rethink their spending habits, despite widespread optimism about future income growth. This is according to the latest TransUnion Q2 2026 Consumer Pulse Study, which reveals that 52% of surveyed consumers reduced discretionary spending during the preceding three months, while 32% increased the pace of debt repayments and 24% boosted contributions to emergency savings.
The findings paint a picture of households attempting to strengthen their financial resilience amid uneven income trends, rising borrowing costs and uncertainty over their economic circumstances.
However, the apparent financial discipline masks considerable pressure, with 45% of respondents saying their financial situation was worse than anticipated at this point in 2026. Although 43% reported their finances were performing better than planned, the figures suggest that many Namibian consumers continue to struggle to make ends meet.
Income trends
Income trends reinforce this mixed picture. While 28% of respondents reported an income increase over the preceding three months, 39% said their earnings remained unchanged and a further 33% experienced declining incomes.
Despite these pressures, consumer expectations remain remarkably positive. Some 73% expect their incomes to increase over the next 12 months, while 71% are optimistic about their household finances during the same period.
Lara Enslin, chief executive officer of TransUnion Namibia, said consumers were increasingly taking control of their household finances by adjusting their spending and strengthening their financial safety nets.
“Consumers are not simply reacting to higher living costs. They are actively adjusting spending habits, reducing debt and building financial safety nets that can help them navigate uncertainty and improve their long-term financial stability,” said Enslin.
The survey, conducted in April and May 2026 among 258 adults in Namibia in partnership with research provider Dynata, highlights the delicate balance households are striking between meeting immediate expenses and preparing for future financial shocks.
Access to credit
While credit remains important, younger borrowers remain overly cautious about accumulating debt. Despite the drive to reduce debt, access to credit remains central to Namibians’ financial aspirations.
The study found that 89% of respondents considered access to credit and lending products important in achieving their financial goals. Such products can help households cover unexpected expenses, finance education and transportation, and meet other significant needs. However, confidence in obtaining credit remains a challenge.
Only 36% of respondents believed they had sufficient access to credit, while 46% said they did not. Similarly, 36% believed they would be approved for new credit if they applied, compared with 39% who lacked that confidence.
Meanwhile, the survey’s findings point to a potential gap between the importance consumers attach to borrowing and their perceptions of the credit available to them.
Age-related differences also suggest that borrowing intentions are shifting. Among Millennials aged 30 to 45, 46% planned to apply for new credit or refinance existing borrowing over the next year, representing a marginal one-percentage-point increase from the previous year.
By contrast, only 30% of Generation Z consumers aged 18 to 29 intended to apply for credit, a substantial 15-percentage-point decline year-on-year. The sharp drop suggests younger consumers may be becoming more cautious about taking on additional financial obligations, although the survey does not establish the reasons behind the change.
Enslin said lenders needed to understand individual circumstances and use data-driven insights to support responsible access to credit while managing lending risks.
Financing and affordability
The challenge for financial institutions will be to balance access to financing with affordability, particularly as households attempt to reduce existing debt while preparing for uncertain economic conditions.
Digital fraud emerges as another household risk
Alongside financial pressures, consumers face a growing threat from digital and online fraud.
Nearly two-thirds, or 65%, of respondents said they had been targeted by fraud through email, online platforms, telephone calls or text messages during the previous three months. Of those surveyed, 10% reported falling victim to scammers.
Moreover, the findings underline how digital crime can compound household financial vulnerability, particularly when consumers lose money or have their personal information compromised. Some respondents demonstrated greater awareness of the risks. Among consumers notified that their identities or online account details had been stolen, 50% said they changed the password on the affected account.
However, TransUnion identified a significant weakness in consumer preparedness, namely among those who had taken no action in response to cybersecurity concerns during the previous 60 days, the most common reason was uncertainty about what steps to take.
Enslin noted that practical consumer education remained essential to improving protection against fraud.
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