04/11/2026
Before saying “yes” to credit, ask yourself: Can I really afford the repayments?
Here’s a quick way to check:
Step 1: Write Down Your Monthly Income
Include your salary, side hustles, or any stable income.
Step 2: List Your Monthly Essentials
Rent / bond
Food & transport
School fees / childcare
Insurance & medical aid
Other fixed commitments
Subtract this from your income. The money left is your disposable income.
Step 3: Compare to the Credit Repayment
If the repayment is more than 30–35% of your disposable income, it may strain your budget.
If taking the credit means skipping essentials, it’s not affordable.
Warning Sign: If a lender approves you without asking for proof of income and expenses, it could be reckless lending.
Tip: Always test if you can save the repayment amount for 2–3 months before taking credit. If you struggle, the credit will likely become a burden.
At PL Financial Literacy, we help clients create realistic budgets, assess affordability, and make informed decisions before taking on credit. Don’t fall into the trap of borrowing what you can’t repay — let us guide you.
Next Topic: We’ll look at "Why Proof of Payment Is Your Best Friend". Don't miss it!
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