No more spirals: Take control of your credit and debt
In South Africa, credit can be a stepping stone or a slippery slope. Used wisely, it helps you invest in things like education, transport, or building a home. But if used carelessly, it can spiral into stress, sleepless nights, and growing debt.
Let’s break the cycle.
What is credit, really?
Credit is money you borrow and agree to pay back, usually with added interest. It includes things like:
- Credit cards
- Clothing accounts
- Store or retail credit
- Even informal borrowing (e.g., mashonisa)
But not all credit is equal, and how you use it matters.
Start by understanding your credit score. This number shows you how well you manage debt and affects whether you’re approved for credit and at what cost. A good score means you’re trusted to pay back money, which helps you qualify for better loan terms. Bayport’s credit score infographic explains what affects your score and how to improve it.
Good vs risky credit usage
Here’s how to tell the difference:
- Good credit use:
- Paying your accounts on time
- Only borrowing what you can afford
- Using credit for long-term needs (education, car)
- Risky credit use:
- Borrowing to pay off other loans
- Using credit for luxury or non-essential items
- Skipping or delaying payments
- Relying on mashonisas with high interest rates
Feeling stuck in debt? There is a way out
You’re not alone, and you are not powerless. Here is a simple plan to start taking control.
The DIY snowball method:
- List all your debts from smallest to biggest.
- Pay the minimum on all of them.
- Put any extra money toward your smallest debt.
- Once that’s paid, roll that amount into the next one, until that is paid, and so on.
- Keep going – each payment grows like a snowball.
This method works because it gives you quick wins, which keeps you motivated.
You are not your debt
So many people feel shame around money and debt. But remember: debt is something you have, not who you are. With support, knowledge, and small steps, you can rewrite your financial story.
Be informed. Be brave. Be free.
No more spirals. No more shame. No more fear.
Take control of your debt – and your future.
Want help? Bayport offers personalised debt solutions through your employer. Speak to us about how debt consolidation can simplify your repayments and reduce financial stress.
