Healthy credit habit 1
Don’t over extend yourself; borrow only what you can afford to pay back.
A guideline is to borrow up to one-third of your monthly income. This includes home loans, credit cards, short term loans, student loans and store accounts. You need to manage your monthly repayment amount carefully so that once you have paid back your monthly instalment each month; you are able to maintain your lifestyle.
The worst case scenario is that your monthly instalment is too high and you need to take out a new loan in order to make it to pay day. This creates larger problems next month when your loan repayments are higher and you continue to struggle to make ends meet.
Avoid this situation by managing your debt levels responsibly.