The benefits of repaying credit faster

Whether it’s credit card debt, a personal loan, or a home loan, paying off your credit sooner could change your financial future.

Here’s why it’s a smart move:

1. Save on interest

The longer you carry debt, the more interest adds up, increasing what you owe. Paying off your credit faster reduces the interest, keeping more money in your pocket.

Example: If you owe R10 000 on a credit card with a 20% interest rate, paying the minimum could take years and cost you thousands in interest. You’d cut the interest and clear the debt faster by doubling your payments.

2. Boost your credit score

Your credit score reflects your financial health, and a key factor is your credit utilisation — the balance you owe versus your credit limit. Paying off your credit faster lowers this balance, improving your score and making you more attractive to lenders.

3. Reduce financial stress

Debt can be stressful. Monthly payments and rising interest can weigh you down. Paying off your credit sooner eases this burden, giving you more peace of mind and greater financial freedom.

4. Free up cash for savings and investments

Once your debt is paid off, you can use that extra cash for other goals — like saving or investing. The money that was going toward debt can now help build wealth through savings accounts, retirement funds, or other investments.

5. Gain financial freedom

Clearing your credit balances allows you to make more choices with your money. Fewer financial commitments mean more control over your finances, bringing you closer to financial independence.

6. Be prepared for economic uncertainty

Life is unpredictable — job losses or unexpected expenses happen. Less debt means more stability when things get tough. Without high-interest debt, you’ll be better prepared to handle financial setbacks.

7. Avoid the debt trap

Taking too much credit can trap you in a cycle of debt—paying off old balances while new ones build up. Paying off your credit faster breaks this cycle, helping you avoid future debt spiralling out of control.

Tips for paying off credit faster:

• Make extra payments: Even small additional payments help reduce interest and shorten the repayment period
• Focus on high-interest debt first: Pay off the highest-interest debts to save the most
• Consolidate debt: Consider rolling high-interest debt into a lower-interest loan for lower and sometimes quicker repayments
• Set a budget: Cut unnecessary expenses and stick to a budget, freeing up more money for debt repayment

Paying off your credit faster is an investment in your financial future. It saves you interest, boosts your credit score, and gives you more control over your money. Whether it’s reducing stress or unlocking new opportunities for savings, paying off credit sooner sets you up for long-term success.

Interested in learning about how credit can change your life? Take our free, 25-minute credit short course, and you could win weekly and monthly prizes of up to R5 000!