See how long it takes to pay off your credit card and how much interest you'll pay. Compare minimum payments vs fixed payments to find the best strategy.
Calculate payoff time and compare payment strategies
SA credit card rates typically 15% - 27% per year
Compare against minimum payments
Even R200 extra per month can save you thousands in interest and years of payments. Set up a fixed debit order for more than the minimum.
Some banks offer 0% balance transfers for 6-12 months. Move your debt and pay it off interest-free. Watch for transfer fees (usually 2-3%).
Personal loan rates (15-20%) are often lower than credit cards (20-27%). Consolidate credit card debt into a fixed-term loan.
Credit card interest rates are capped by the NCR. If you're over-indebted, contact a registered debt counsellor for help. Debt review can protect you from legal action and reduce monthly payments.
Credit cards charge interest monthly on your outstanding balance. SA credit card rates range from 15% to 27% per year, regulated by the NCR. Understanding how interest works can save you thousands.
If you pay full balance by due date
Applied monthly if you carry a balance
Paying only minimum takes years to clear
Interest rates capped by National Credit Regulator
| Bank | Interest Rate |
|---|---|
| FNB | 18% - 22% |
| Standard Bank | 18% - 21% |
| ABSA | 18% - 22% |
| Nedbank | 18% - 21% |
| Capitec | 17% - 20% |
| Discovery | 15% - 19% |
A R25,000 balance at 21% interest with 5% minimum payment takes over 10 years to pay off and costs R20,000+ in interest! Paying just R500 extra per month cuts this to under 3 years.
Interest is calculated daily on your average daily balance, then charged monthly. If you pay your full balance by the due date, you avoid interest. If not, interest applies to your entire balance including new purchases.
Most SA credit cards offer 55 days interest-free on purchases. This runs from your statement date to your payment due date. If you pay in full, you pay zero interest. Cash advances never have an interest-free period.
Balance transfers (0% for 6-12 months) can save money if you'll pay off the debt in that period. Watch for transfer fees (usually 2-3%) and revert rates. Only worth it if you stop using the old card and have a payoff plan.
Pay more than minimum, pay before due date, negotiate a lower rate with your bank, or consider a personal loan to consolidate (usually lower interest). Never miss payments - late fees and penalty rates make things worse.
If you're only managing minimum payments and debt is growing, consider debt counselling. Contact the NCR or a registered debt counsellor for free advice. Debt review can reduce payments and protect you from legal action.