There is nothing better than being debt free but then this is the ideal lifestyle that the majority of people cannot afford.

This is especially true today compared to some years back, given the state of the economy of South Africa. So the end result is that one needs to borrow money to ensure that things keep going as before in one's life. As this is becoming a necessity, the best way to go about borrowing money is to make sure that you mange it in the right manner.

There are two major types of loans in South Africa

One is the short term loan and the other is the long-term loan. There are many other categories when it comes to short or mid term loans and the credit card loan comes under such a category. On the other hand, when it comes to long term loans the sub categories are fewer in number. Such loans mostly deal with larger amounts. A good example here is the mortgage loan.

In South Africa, when it comes to the open ended loans like credit cards, they are general used for satisfying short term borrowing needs, like paying your bills or shopping for groceries etc.

In fact it is suggested that credit cards are used for the short term purposes only. This is to make sure that one can make the repayment in time and without any issues as well. Another reason for which this form of credit is preferred over others is that when it comes to the interest rates, these are the best here. When compared to other forms of short term loans, the interest that is charged on it increases the overall cost of the entire loan quite a lot. The result is that the users of these loans get stuck in a cycle that further adds to their problems instead of solving them.

When it comes to short term loans in South Africa it is better to use your credit card for the process. However, there are a few pointers that one needs to keep in mind to ensure that things go smoothly. Firstly, one should not have more than one credit card. Using more than one card will wreak havoc on your financial standing. The other important thing to keep in mind is that it is best not to use your card for repaying long term loans. You should not use it for luxury purchases either.