Make using credit wisely part of your 2025 resolutions

Using credit wisely should be part of your 2025 new year's resolutions to ensure that your year goes smoothly without any credit bumps that can throw your finances off course.

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"Let's be frank: credit has a bad reputation," says Cheslyn Jacobs, chief commercial officer at TymeBank. "This is mostly due to so many consumers over-extending themselves.

"While credit can help individuals and families during tough financial times and to access much-needed assets, over-indebtedness is an all-too-common problem in South Africa. According to the Reserve Bank, South Africans spend 9% of their disposable income servicing debt, while the total household debt amounts to about 62% of a family's income.

"Unfortunately, many South Africans who have no access to credit from banks end up borrowing money from unregulated lenders such as loan sharks, who charge exorbitant fees."

Jacobs says being clear on the type of credit appropriate for your needs and understanding how to use credit smartly is essential. He has these tips to help you use credit to empower and not debilitate yourself: