All of our 2020 Money Makeover candidates were struggling with credit card debt. When your spending exceeds your income, it is easy to slip into the habit of using your credit card to make it to the end of the month. But unless you are paying it off in full each month, it quickly becomes a debt trap. Our candidates were given different solutions by their advisers to settle their credit cards based on their personal circumstances. Read more here.
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Hi Maya,
This Absa/City Press Money Makeover Challenge is such a wonderful program. I wish that we could offer something similar to children in our schools.
It is amazing to think that a credit card with a balance of R20,000.00 at 18% interest will cost you the following:
1. An Installment of R500.00 takes 62 months to settle this debt. The interest paid over that period will be approximately R10,500.
2. An Installment R1,000.00 takes 24 months to settle this debt. Interest paid over that period is approximately R4,000.
3. An Installment R1,500.00 takes 15 months to settle this debt. Interest paid over that period is approximately R2,500.
4. An Installment R2,000.00 takes 11 months to settle this debt. Interest paid over that period is approximately R2,000.
Make sure that you can afford to pay the maximum installment due each month, before taking on credit card debt. Try not to revolve credit card repayments.
Best of luck to the candidates. You are so lucky to have this opportunity.
Lauren Heekes – Negociate Credit Solutions
And… if you only pay the minimum installment it can take up to 20 years to pay off because the minimum is only about 3% of the outstanding balance and it decreases as the balance decreases…
Great article for all to well understand
Thank you
Hi Maya. I have a debt with 3 loan people as well as a credit card.
I lost my job due to unforseen circumstances and I have huge debt to pay off.
What is the best way of sort myself and my debt out.
If you were retrenched you can claim on your credit insurance policies which will pay your debt repayments for up to 12 months.