For many South Africans, borrowing money remains an important part of their lives for survival. However, January often brings added pressure to many, its back-to-school costs, festive season debt, and the familiar ‘Januworry’ can stretch household budgets to the limit. As this pressure marks the start of 2026, taking on credit requires more careful planning and consideration than ever before.
Responsible borrowing isn’t about avoiding loans altogether, but taking what you know you can manage at the end of the month. This includes understanding the trade-offs, choosing the right type of credit for your needs, and knowing what support is available if things don’t go as planned. Michael John Davis says it is important to compare interest rates and repayment terms; it’s equally important to be clear on why you need the loan.
“Is it addressing a genuine need, supporting long-term wealth creation, or simply easing short-term pressure while creating long-term challenges?” He emphasises that credit should serve a productive purpose. “Clear reasons for borrowing make it easier to choose the right product and avoid unnecessary strain later,” he adds. “Lenders also pay attention to why credit is used.
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Borrowing for clearly defined and planned needs sends a very different signal relative to borrowing repeatedly to get through the month.” Davis warns that a loan isn’t free money. It’s a monthly commitment that you must be able to live with for months, sometimes years. “Without properly checking what you can afford, a loan can quickly become a problem instead of a solution,” he says. “Affordability should be based on what you take home each month after deductions, with fixed expenses like housing, transport, food, and insurance assessed first, followed by variable costs like water, electricity, airtime, data, and so on.”
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