IN CONVERSATION WITH BONGANI MASHALANI
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Credit has become a defining feature of modern South African life, especially for young people and students seeking independence. Many start their journey with retail store accounts, believing this is the only way to build a credit record. But the reality is broader: credit scores are shaped by payment history, credit utilization, and the mix of products used. Entry level credit cards, secured student products, and even small personal loans, when managed responsibly can help establish a positive financial reputation without leading to unmanageable debt.
At the same time, the rising cost of living has made credit more central to everyday survival. Reports show that households are increasingly reliant on credit to cover essentials, from food to transport, even as interest rates remain high. This raises the question: have we become too credit centered as a society? While access to credit can open doors to education, mobility, and opportunity, over reliance risks trapping young people in cycles of debt before they’ve built financial stability.
For students and youth, the challenge is twofold: learning how to build credit responsibly while resisting the temptation to live beyond their means. Financial literacy is key understanding that credit should be a tool for growth, not a shortcut to luxury. By focusing on timely payments, keeping balances low, and diversifying credit responsibly, young people can build strong credit profiles that support their future goals, from renting apartments to securing business loans.
At the same time, the rising cost of living has made credit more central to everyday survival. Reports show that households are increasingly reliant on credit to cover essentials, from food to transport, even as interest rates remain high. This raises the question: have we become too credit centered as a society? While access to credit can open doors to education, mobility, and opportunity, over reliance risks trapping young people in cycles of debt before they’ve built financial stability.
For students and youth, the challenge is twofold: learning how to build credit responsibly while resisting the temptation to live beyond their means. Financial literacy is key understanding that credit should be a tool for growth, not a shortcut to luxury. By focusing on timely payments, keeping balances low, and diversifying credit responsibly, young people can build strong credit profiles that support their future goals, from renting apartments to securing business loans.
