According to the National Credit Regulator, over 10 million South Africans have impaired credit records, and many spend more than 60% of their income just repaying debt.
But here's the good news: with the right strategy, you can pay off your debt faster, even on a tight budget. Whether you’re dealing with credit cards, store accounts, or loans, here are 5 proven ways to take control of your finances and crush your debt.
Before you can fix your finances, you need to know where your money is going.
Use tools like:
A simple spreadsheet
Free budgeting apps like 22seven or Goodbudget
Or Meerkat’s own free budget planner
Look at your bank statements. Are you spending R1,000+ a month on takeaways or impulse buys? These are quick wins you can redirect to debt payments.
Tip: Try the 50/30/20 rule - 50% needs, 30% wants, 20% debt/savings, and adjust to fit your situation.
There are two popular strategies for debt repayment:
Avalanche method: Pay off the debt with the highest interest rate first (saves you the most money in the long run).
Snowball method: Pay off the smallest debt first (boosts motivation and builds momentum).
Example:
If you owe:
R8,000 on a credit card (20% interest)
R2,000 on a store card (17% interest)
R5,000 personal loan (15% interest)
Start with the credit card (avalanche) or the store card (snowball).
Whichever method you choose — stay consistent.
Moku Tip: Did you know that store cards usually charge a higher interest rate compared to credit cards? Be careful of buying big purchases with your store cards, as you could be paying more in the long run.
Many South Africans don’t realise this: you can negotiate your debt.
Before falling behind on payments, contact your creditors and explain your situation. Ask for:
A temporary payment holiday
A lower interest rate
Extended repayment terms
What to say:
“I want to pay, but I’m struggling. Can we make an arrangement that suits us both?”
Creditors would rather receive a lower payment than nothing at all. If you’re overwhelmed, a registered debt counsellor like Meerkat can help negotiate on your behalf.
Now that you’ve built your budget, it’s time to cut what you can. Ask yourself:
Can I downgrade my car, cell phone plan, or insurance?
Can I cancel or pause subscriptions like Netflix, Spotify, DSTV?
Can I cook more meals at home instead of eating out?
If cutting expenses isn’t enough, earning more might be your best weapon against debt.
Here are a few ideas South Africans are using today:
Tutoring online via Teach Me 2 or Superprof
Delivery driver with Uber Eats or Mr D (part-time)
Sell used items on Facebook Marketplace or Gumtree
Start a side hustle: baking, sewing, photography, or handyman services
Example: One Cape Town mom earned R1,200/month just reselling clearance stock from Takealot locally. That’s over R14,000 a year toward debt.
If you're behind on payments, facing legal action, or can't afford your monthly debt repayments, you may qualify for debt review. It’s a legal process that helps you:
Pay one affordable monthly amount
Protect your assets from repossession
Become debt-free in 3 -5 years
Get a free debt assessment with Meerkat
Yes, you can pay more than your agreed monthly instalment. This reduces interest and shortens your repayment period.
Avalanche saves more money, but snowball builds motivation. Choose the one you’re more likely to stick with.
Be careful. Many loans come with high fees or longer repayment periods. Rather, speak to a registered debt counsellor before applying.
Yes. As your balances drop and your payment history improves, so does your score.
Debt can feel overwhelming, but you can take control. Use a strategy that works for you, stick to your budget, and stay motivated by tracking your progress. And if you're feeling stuck, Meerkat is here to help, with non-judgemental support and real solutions.
Get your free debt assessment today
Meerkat is a trusted financial wellness company helping South Africans take control of their money. Whether you need help getting out of debt, protecting your family with funeral cover, or building savings , we’ve got your back.
We’re a registered Debt Counsellor (NCRDC2613) and an authorised Financial Services Provider (FSP50979). In fact, we’ve been voted one of the Top 5 debt counselling companies in South Africa!
At Meerkat, we believe in honest advice, non-judgemental support, and simple solutions that work for you.