Since the COVID-19 pandemic, the South African economy has faced significant challenges. To best utilise a credit card and pay it off without incurring too much interest, consider the following strategies:

  1. Pay off your balance in full each month: Make sure to pay off your entire credit card balance before the due date every month. This not only helps you avoid interest charges, but also improves your credit score. To achieve this, only spend within your means and keep track of your expenses.
  2. Use your card for essential purchases only: Limit your credit card usage to essential purchases, such as groceries, utilities, and other necessary expenses. Avoid using it for impulse buys or non-essential items. This will help you manage your spending and minimize the risk of accumulating debt.
  3. Take advantage of interest-free periods: Some credit cards offer interest-free periods on purchases or balance transfers. If you’re eligible, take advantage of these offers to pay off your debt faster without incurring interest. Be mindful of any fees or charges associated with balance transfers, and make sure to pay off the balance before the interest-free period ends.

Remember to monitor your credit card usage regularly and maintain a disciplined approach to spending in order to minimize interest payments and maintain a healthy financial situation.