Avinash and Renel Maharaj, who earn a combined R21000 a month, had lived in their newly bought three-bedroom flat in the Durban suburb of Sherwood for less than a year.

The parents of two small children were forced to move back into Avinash's parents' home when rising interest rates and the global recession hit them hard.

Avinash and Renel were not able to afford their bond repayments and living expenses, and were forced to make drastic changes last year.

"We had to move or we would not have been able to afford food, petrol, school fees and daily expenses," Avinash said. "My parents' house has already been paid off so we only contribute to the rates, electricity and water bills and food, and add to the rent received for our Sherwood flat to pay for the bond."

The couple did not go on their annual December holiday to Johannesburg.

"We used our year-end bonuses, which usually paid for our holiday, to settle clothing and furniture accounts and credit card bills," he said.

By renting out their flat, paying outstanding accounts and not renewing a gym contract, the Maharajs have been able to spend cash instead of credit.

"Pay what you can, when you can. I'd sometimes have money in my pocket to pay an account but would tell myself I'd pay it next month - and then it just started to accumulate."

The couple have stuck to a budget and are confident they will move "home" next year.