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