South Africans spend about 75% of their take-home pay on settling debt – and yet almost half of them still struggle to meet their repayment commitments. These figures from a 2020 South African Reserve Bank report paint a foreboding picture. But not all debt is bad. There are ways to positively manage debt to build a strong credit score which, in turn, can be life-changing.
Ayanda Ndimande, Strategic Business Development Manager: Retail Credit at Sanlam, says, “Credit can empower us to realise a goal – like purchasing a home, pursuing tertiary education, or starting a business. To get credit for these things, you need a good credit score. To build a good credit score, you need a strong credit history, and you can influence this by taking simple steps to positively manage your debt.”
Managing credit takes time and deliberateness. In the current financial climate, many have had to default …