HOW TO USE CREDIT WITHOUT GOING INTO DEBT
1. Use Credit Like It’s Debit
Rule: Only spend what you already have in cash.
- Think of your credit card or store account as a convenience tool, not extra money.
- Before swiping, ask: “Do I have this money already in my account?”
2. Pay Your Balance in Full Every Month
Why: Paying only the minimum keeps you in a debt cycle and racks up interest.
- Set up a calendar reminder to pay off the full balance.
- If you can’t pay in full, pay as much above the minimum as possible.
3. Keep Credit Usage Low
Target: Stay under 30% of your credit limit—under 10% is even better.
- Example: If you have R10,000 credit, try not to spend more than R3000.
- This shows you’re responsible and boosts your score.
4. Use Credit for Planned, Budgeted Expenses
Use credit only for expenses you have already budgeted for like Groceries or Transport
Avoid: impulsive shopping, big buys you “hope” to afford later, or treating credit as “bonus money.”
5. Track your spending
- Use an app, spreadsheet, or checklist to track what you’ve swiped.
BONUS TIP
Set a Credit Safety Rule:
“If I can’t pay it off in 30 days, I won’t swipe it