Credit card experts note that, trends point to the fact that people make late payments during holiday seasons with some going to the extent of funding their holiday’s expenses through credit cards.
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“People should continuously think about their budget as prices of goods and services are continuously rising against what needs to be paid and adjust dates,” Arnold Dippenaar, head of consumer credit Standard Bank told CNBC Africa.
“There are two implications to late payment of credit card debt and that’s the possibility of freeze limit and also negative impact on credit rating,” he added.
Financial advisers counsel customers to use credit cards on big items and pay up debts every month end as to avoid high interest charges and defaulting.
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“We don’t want our customers to get into trouble that’s why we continuously try to educate them as to what they should use the cards for and they should use the card. We encourage our clients to always pay up for items such as groceries at the end of each month in the event that a credit card has been used.”
“Education is something we continuously do to make people aware of the functions of the credit card as this help address the problem that comes with overspending.”
The use of credit card helps customers to avoid the risk of travelling with large amounts of money. The facility is also conveniently used for making payments such air ticket and paying for travel insurance.
If left unchecked, the use of credit card without self-control can have adverse effects on credit card consumers such as negative impression on one’s credit rating and attracting more interests.
BY TRUST MATSILELE