Direct Talk

What to Think About Before Getting a Store Card

Have you ever thought about how much money you’ve spent on impulse purchases in your lifetime? Have you thought about what you could be doing with that money now?

This is a question that Shafeeqah Isaacs thinks about when she considers the years she spent paying off her store card debt. Her student days were filled with impulse purchases of items that she stopped caring about almost as soon as they landed in the cupboard, and as a result most of her first salary went to paying these debts off.

 

It’s easy to get caught up in the instant gratification of a new dress or killer sneakers, but each new purchase adds to the amount you’ll ultimately need to repay. If this amount goes unchecked it could turn into an overwhelming financial mess that you might feel like you’ll never overcome.

Shafeeqah worked her way out of her store card debt, and these days she spends her money on experiences that enrich her life, not things that she’ll forget as soon as she gets home. Her experience has taught her to be more careful with this kind of spending.

Here are some things that Shafeeqah wants South Africans to think about before they sign up for a store card:

  1. Some stores charge card maintenance fees, initiation fees and compulsory card protection insurance which you will have to pay on top of your interest charges.
  2. Store card rewards require significant spending on your behalf in order to earn enough points for meaningful discounts or returns, which means you might end up spending more than you planned in the hopes of earning more.
  3. ‘Zero interest intro periods seem like a great way to spend and pay back exactly that amount, but it’s easier said than done. Additionally, if you don’t manage to pay back the amount you loaned within the intro period, you may have to pay interest on the whole amount from when you signed up.
  4. Consider where you’re signing up for a store card. Is it worth going into debt to buy things that you might not like in a few months’ time?

Not all store cards are a bad idea, and many people use them as a starting point to building their credit score. But it’s always a good idea to know your financial limits before signing up for one. Spending wisely means you’re saving wisely.

Check out Direct Talk for more stories on life, money and everything in between.

Pulse

Pulse is a FREE financial wellness tool that allows you to check and improve your credit rating.

Find Out More
Personal Loan

A Personal Loan is a convenient way to take care of your personal and family needs and goals.

Find Out More
Consolidation Loan

Consolidating can be an effective way to manage your finances and increase your cash flow.

Find Out More
Insurance

You could save on your monthly premiums by insuring your car and home with the same insurer.

Find Out More
Medical Aid

Find medical aid cover that best suits you and your family’s needs.

Find Out More
24%

of customers use loans for consolidation

24%

of customers use loans for renovations

12%

of customers use loans for education

Our Sponsorships

Read more about how we support grassroots Rugby through our Currie Cup Sponsorship.

Read More
Job Opportunities

Thinking of working for DirectAxis? Why not explore what it means to work at DirectAxis.

Read More
Customer Care

We pride ourselves on delivering the best possible customer service. Get in touch today.

Read More
Social Initiatives

Find out more about the corporate social initiatives we're undertaking to deliver positive change.

Read More

Your direct connection to Financial Services. Direct Axis SA (Pty) Ltd (Registration no 1995/006077/07) is an authorised Financial Services Provider (FSP 5 and FSP 7249) © Copyright 2018 
Privacy Policy - Legal Documents - Sitemap

Loan repayment terms range from 24 to 72 months. The maximum interest rate with regards to a DirectAxis Personal Loan is 27.5% per annum (compounded monthly). Your rate and initiation fee will be determined according to your personal risk profile.
An illustrative example of a loan at an interest rate of 27.5% per annum would be: Loan amount R50 000 plus a once-off initiation fee of R1 207.50 and a monthly admin fee of R69.00, over 72 months.
The total cost of the loan will be R 110 013.57 which is a maximum Annual Percentage Rate (APR) of 30.74%.