Credit cards are used by a vast number of people to pay for goods and services. While South African consumers increasingly shop online, many young buyers are going into debt in the process. According to DebtBusters, 27% of people who have asked for financial assistance in the last three years are between the ages of 24 and 32. This is because these young consumers are not aware of the long-term implications of owning a credit card.<\/p>\n\n\n\n
Anyone who has a credit card risks carrying too much credit card debt. To keep you debt free – keep in mind the following tips:<\/p>\n\n\n\n
Keep an emergency fund<\/strong><\/p>\n\n\n\n People might create credit card debt after a major car repair or medical expense. Therefore, having an emergency fund helps you avoid such debt, by ensuring that you have cash to use when an emergency arises.<\/p>\n\n\n\n Avoid balance transfers<\/strong><\/p>\n\n\n\n Don’t transfer balances from card to card to avoid your due dates. If you transfer a balance to another credit card, there must be a good reason, like taking advantage of a lower interest rate. Otherwise, your balance will simply increase because of the balance transfer fee.<\/p>\n\n\n\n Pay your balance in full each month<\/strong><\/p>\n\n\n\n If you want to avoid credit card debt, pay off your full credit card balance every month. This will eliminate the risk of getting into credit card debt.<\/p>\n\n\n\n Be aware of the signs of credit card debt<\/strong><\/p>\n\n\n\n If you recognize the early warning signs of credit card debt, you can avoid getting into debt altogether. For example, the inability to pay your full balance is a sign that you are headed for credit card debt.<\/p>\n\n\n\n Understand your credit card terms<\/strong><\/p>\n\n\n\n It is better to thoroughly read through the credit card agreement to make sure you understand how interest will affect to your account. When will you be charged a fee? When does your interest rate go up? Clarity on such features of your credit card can help you avoid credit card debt, since you understand how using your credit card costs more.<\/p>\n\n\n\n SID Payments allows consumers to pay directly from their bank accounts for online purchases, making it a smart way for shoppers to avoid credit card debt. Since you can make online payments without a credit card, there\u2019s no need to draw on credit when shopping online.<\/p>\n\n\n\n Also, you don\u2019t have to sign up in order to pay with SID, and you will not be charged an additional fee. When completing a payment, your usual internet banking security protects you throughout the transaction, making SID payments safe online payment methods.<\/p>\n","protected":false},"excerpt":{"rendered":" Credit cards are used by a vast number of people to pay for goods and services. While South African consumers increasingly shop online, many young buyers are going into debt in the process. According to DebtBusters, 27% of people who have asked for financial assistance in the last three years are between the ages of […]<\/p>\n","protected":false},"author":13,"featured_media":10851,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-10319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education-2"],"yoast_head":"\n