Credit cards can be useful when managed responsibly, but relying on them to pay for everyday expenses can quickly become an expensive habit.
Also see: 7 Expenses that quietly drain your salary
Using credit for groceries, takeaways, transport or other regular costs can make it difficult to know whether your income is actually covering your lifestyle. According to the South African Government, more than 10.5 million credit-active consumers had arrears, defaults or other negative information on their credit profiles by June 2025.
If you regularly use your credit card before payday, here are practical ways to break the cycle.
Track your spending
Start by reviewing your recent bank and credit-card statements. Identify how much you spend on essentials, entertainment, debt repayments and unnecessary purchases.
According to the National Credit Regulator (NCR), creating a monthly budget can help consumers understand where their money goes and identify spending that can be reduced.
Create a realistic budget
List your monthly income and essential expenses, including rent, groceries, transport, utilities, insurance and debt repayments.
The Western Cape Government encourages consumers to create realistic budgets, set savings goals and avoid unnecessary debt and impulsive spending.
Once you know how much you have available, set a limit for non-essential spending and stick to it.
Separate needs from wants
Before using your credit card, ask yourself whether the purchase is necessary.
The NCR advises consumers to borrow as little as possible and warns against using credit for consumables and luxuries.
You don’t have to eliminate every treat, but make sure non-essential purchases are included in your budget rather than automatically charged to your credit card.
Also see: Correctly declare expenses in a home loan application
Build an emergency fund
Unexpected expenses can push people towards credit. A car repair or urgent household expense can quickly become debt if you have no savings.
Start small by putting aside an affordable amount every month. According to the Western Cape Government, building an emergency fund can help households prepare for unexpected expenses and reduce financial pressure.
Pay down existing debt
If you already have a credit-card balance, focus on reducing it while avoiding unnecessary new purchases.
The NCR recommends considering interest and other charges when managing credit and planning repayments.
Try paying more than the minimum amount when you can, as this can help reduce your balance faster.
Use your available income
For everyday purchases, consider using your debit card or cash instead of credit.
You could also set a weekly spending limit for groceries, entertainment and other variable expenses. This makes it easier to see how much money you have left and prevents your credit limit from feeling like extra income.
Give yourself a cooling-off period
For non-essential purchases, wait 24 hours before buying. This can help you decide whether you genuinely need the item or are making an impulse purchase.
Get help when necessary
If you are struggling to meet repayments or regularly use credit to cover basic expenses, don’t take on more debt to solve the problem.
The NCR provides information about responsible borrowing and registered debt counsellors.
Breaking the habit takes time, but reducing everyday credit use can help you regain control of your finances and work towards greater financial stability.
Also see: Money Smart Week: The power of possible starts with financial literacy
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