Two important things that help you stay on top of your debt:

1. Keep track of your credit report. According to the National Credit Regulator, you are allowed to access your credit report once a year for free. Visit NCR to find out more.
2. Using debt wisely.

Know your credit score

Credit bureaus calculate your credit score based on your spending and how you manage your finances. They will give your credit report to any shop or financial company that you request a store card from or apply to for a personal loan. Make sure you know what’s on your credit report and that it’s all correct. Review your credit report at least once a year to assess and improve your position, if need be.

You can request your credit report from any of the major credit bureaus.

Some tips if you are thinking about borrowing money.

• Be honest about how much you can actually afford when applying for credit. Don’t guess your expenses. Use your actual expenses from the last year and make adjustments for any increases you think are likely to have in the future.
• Understand what you are signing and agreeing to in all the terms and conditions.
• To pay off your debt faster, you need to pay more than your minimum monthly installments. It’s generally a good idea to try to pay off your most expensive debt (debt with the highest interest rate) first.

A debt-to-income ratio is calculated as follows:

Monthly debt repayments ÷ monthly salary before tax × 100.