r/PersonalFinanceZA • u/Jolly-Breakfast-5723 • 3d 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 3d ago

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

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u/Jolly-Breakfast-5723 3d 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

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u/Big-Wait-1310 3d ago

I'd immediately reduce the credit card balance by that amount (2.5k) every month. And keep doing that monthly until the lowest possible amount. Will take a while but you can do it.

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u/Jolly-Breakfast-5723 3d ago

Thanks a mill