Debt Expert - Anton Viljoen


Posted by: Abel | 2013/05/24 09:42

Credit card repayment query

I have a credit card with African Bank, and the total credit equals R11 000. They deduct an amount of R715 per month from my account, with an option to withdraw R400. I would like to settle the credit but am unable to do so.

Please advise on how to settle the credit card and how I can repay it in total. Should I leave the amount deducted until it reaches the sum of R11 000 and then close the account?

This has rattled me to the core, and has left me asking serious questions.

expert answer

Posted by: Anton Viljoen | 2013/05/27 15:29

It seems that you have an available credit limit of R11 000. You do not say if you have reached that limit or not.

In any case, the bank will charge a minimum amount on any outstanding amount to be repaid monthly, which is the R715. In order to keep your credit active, they allow you to withdraw the amount of R400 per month.

My advice would be as follows:

1. Cut up your credit card so that you won't be tempted to use it.
2. Do not withdraw any more money from the account.
3. Pay the R715 monthly, together with any additional amount that you can afford, so that you can pay off the account as quickly as possible. Remember, interest will continue to be added to the outstanding balance every month.

Once you have  paid off the full amount, you can officially close the account.

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user comments

Posted by: Anonymous | 2014/04/02 16:53
I would pay it off, and keep it, you never know when you need it in an emergency. You might not qualify for a credit card at a later stage
Reply to Anonymous
Posted by: Anonymous | 2013/06/04 14:00
I think cutting up the card is the best solution and change you style of spending unnecessarely
Reply to Anonymous
Posted by: AB | 2013/05/30 13:35
Having the selfdiscipline to pay off and not use the available money again is the problem, especially if you have a "crisis". I went to the bank and asked whether they could electronically reduce the outstanding every month but apparently this is not possible. You have to phone the credit card division yourself and ask for the limit to be made smaller. In my opinion this is something that the banks should make available. I have implemented this on my overdraft and that has come down nicely.
Reply to AB
Posted by: Anonymous | 2013/05/30 02:09
Reply to Anonymous
Posted by: JS | 2013/05/29 14:23
I had a similar problem with an overdraft. I suggest that at the beginning of the month you let the R715 go off your account and pay an extra R50 or R100, whatever you feel you can afford. If you don't have it to spend later in the month, you won't spend it. If you are too nervous to cut up your credit card, give it to a friend or freeze it in a block of ice. It must be difficult to get to so that you can't use it easily, but still available in case of a drastic emergency. You will be amazed how fast your outstanding debt will come down if you just take it out of your purse.
Reply to JS
Posted by: Ralph | 2013/05/29 10:09
The best way to stay out of debt is lifestyle change. If you change your lifestyle you will never go out of debt. Make purchases which you want and forget about the needs. I don't go out with friends and I stay home over the weekend. I don't buy booze anymore.
Reply to Ralph
Posted by: Js | 2013/05/29 14:24
Don't you mean forget about the wants and only buy what you need?
Posted by: Anonymous | 2013/05/29 08:18
The problem "we" have is if the money is there...we HAVE to use it. this is why we take out credit cards, loans ect... if its a home loan, you doing it long term for something you can show for in about 20 years and be thankful for. credit cards and loans are for human benefit... buying fancy things and having cash. i have the same problem... cutting the card would make more sense. out of sight, out of mind.... altho i have to say, seeing that debit order being taken every month with nothing to show for it really breaks my heart. be strong, dont use the card R11 000 credit is nothing compared. but with african bank you will end up paying back almost R25 000 back paying it off with just the installment, pay back a bit more every time if possible. here is to becoming debt free.... good luck!
Reply to Anonymous
Posted by: Mr.T | 2013/05/28 14:31
OMG!!!! Khensi
Reply to Mr.T
Posted by: Mr>t | 2013/05/28 14:29
Shred your card its the best way you can do
Reply to Mr>t
Posted by: Khensani | 2013/05/28 11:39
I wanted a loan from STB but because i had an existing loan I had to wait for another month but qualifying for a credit card. I took a credit card of R40 000 with the bank. my question is, how is the bank supposed to deduct my payment from my cheque account to the credit card. apparently they deduct everthing on my cheque account to cover everthing that I have used. is that the correct proceedure?
Reply to Khensani
Posted by: Anonymous | 2013/05/28 10:11
That's right. Rather develop the discipline if you can. Cutting the card is not so much the solution as many people have other accounts linked to their credit card account. Thus the temptation remains to transfer money out the card account to a current account for instance. So the absence of a physical card might not necessarily prevent withdrawals.
Reply to Anonymous
Posted by: AG | 2013/05/28 09:24
Cutting up the card is the safe option but I would suggest that you rather try and develop the self discipline to be able to not use the credit card. It is always good to have credit card available for real emergencies like unexpected medical expenses, major car repair etc. If you really cannot resist tempation to use it for other stuff then cut it up.
Reply to AG

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