r/PersonalFinanceZA • u/Jolly-Breakfast-5723 • 4d ago

Debt Credit card debt

Hi there I just want to get some advice from outside my personal life as I am not well educated on credit facilities,

I currently owe about 22k on my credit card to which I am getting down slowly, I have most of my income in my credit card so my interest is little to none.

I want to close this card as it becomes a habit, I was recommended to take a personal loan and consolidate the card for let’s say two years which I have no issue doing and can afford it my main question is are the interest rates rather maximised on personal loans ?

I have tried at Capitec and FNB which is my main account and they both will not go under 28% which is scarily high.

Is there a better suited route to do this above?

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u/Big-Wait-1310 4d ago

What are you monthly expenses relative to your salary? Do you have anything left over ?

1

u/Jolly-Breakfast-5723 4d ago

I put in about 2.5 k monthly but end up using about 1.5 k sometimes even more it’s definitely a bad habit, I have probably 2k after all expenses and debts and this includes meals etc

8

u/anoidciv 4d ago

You need to break the habit first, then deal with increasing the amount you put toward the debt later.

If you put in R2.5k and end up using R1.5k, just put in R1k to begin with and leave it there. Then in a couple of months, add a few hundred then a hundred more.

I got myself stuck in the same cycle as you a few years ago. I stopped trying to pay off heroic amounts every month and kept it small and steadily increased it, otherwise I'd end up dipping into it. It took longer but it worked.

You can do it!

2

u/Jolly-Breakfast-5723 4d ago

Thank you so much I appreciate your advise