THE National Credit Regular has some credit advice.
- Borrow as little as you can.
- Never sign a blank credit agreement as you will not have control over other information that can be added after you sign.
- Never leave your identity document, bank card, Sassa card or PIN with the credit provider.
- In terms of the National Credit Act, a five-business day cooling off period only effects credit agreements signed at premises that are not the credit providers.
- Familiarise yourself with credit insurance to avoid nasty surprises when you most need it the most. It is advisable to take out credit insurance.
- Create a monthly budget and stick to it. Work out how much income your family earns and what your total expenses are each month.
- Start saving consistently. Put aside at least 15% of your income every month in a safe investment. Save for your retirement as well.
- Paying your debt late or not paying the full instalment will badly affect your credit rating and possibly reduce new credit in the future. If you are in trouble, talk to your credit provider – do NOT skip payments!
- Pay your home loan first.
- You are entitled to one free credit report a year from the credit bureaus. Additional reports come at a cost.
