Your credit card statement shows a minimum payment, and paying it keeps your account in good standing. But if that's all you pay, clearing the balance takes a very long time, and costs far more than you borrowed.
Why the minimum shrinks
The minimum is usually a percentage of what you owe. Standard Bank, for example, publishes a minimum of 3% of the outstanding balance. As the balance falls, so does the minimum, so you're always paying a small slice of a shrinking amount. Most of each early payment goes on interest.
A worked example
You owe R20,000 at 21.25% a year (the legal maximum for credit cards while the repo rate is 7.25%), and you spend nothing more on the card.
- Paying the minimum (3% of the balance, at least R50): the first payment is R610.63. It takes 20 years and 4 months to clear, and you pay R26,191.76 of interest: more than you borrowed.
- Paying a fixed R1,000 a month: cleared in 2 years and 1 month, with R4,908.42 of interest.
- Paying a fixed R2,000 a month: cleared in 12 months, with R2,208.22 of interest.
The trick: fix the payment
The single most effective change is to pay a fixed amount each month that doesn't shrink as the balance does. Set it as a debit order, and every month more of it goes on the capital.
Watch out for
- New spending. Every purchase adds to the balance and pushes the payoff date back.
- Payments that don't cover the interest. At 21.25%, R20,000 builds up R354.17 of interest in a month. Pay less than that and the balance never falls.
- Promotional 0% periods. They help, but note when they end and what the rate becomes.
Try your own balance in our credit card repayment calculator. If you're struggling with debt, a debt counsellor registered with the National Credit Regulator can help.
Working out a payment that works
A useful target is the payment that clears the card within a year. On R20,000 at 21.25%, that's about R1,865 a month. If that's too much, pick the highest fixed amount you can manage and keep it there, even when the minimum shown on your statement falls. Every rand above the minimum goes straight onto the balance.
Sources
- Government Gazette 39379: review of limitations on fees and interest rates
- South African Reserve Bank: MPC statement, September 2026
This is general information, not tax, legal or financial advice.