January has earned the nickname “Januworry” for good reason, with many South Africans having entered 2026 with a Dezemba-sized financial hangover. Everyday expenses such as school fees, transport and insurance premiums, however, continue to accumulate. As a result, credit often plays a critical role in bridging festive-season affordability gaps, with January exposing the true cost of that reliance.
Ayanda Ndimande, strategic business development manager at Sanlam Personal Loans
Industry data shows that South Africans are increasingly turning to short-term credit products, including credit cards, personal loans and buy now, pay later (BNPL) services, as a financial safety net. The TransUnion Consumer Pulse Study: South Africa Q4 2025 reveals that 36% of consumers expect to miss at least one bill payment, while an equal share (36%) plan to apply for new credit or refinance existing debt.
“Short-term credit has become a coping mechanism for many households, particularly during high-pressure periods such as the holidays,” says Ayanda Ndimande, strategic business development manager at Sanlam Personal Loans. “While credit can be a useful tool when managed responsibly, sustained reliance without a clear plan can undermine long-term financial wellbeing.”
Understanding the credit challenge
Credit management has far-reaching consequences, warns Ndimande. “Missed or late payments can negatively affect credit scores, limit access to future borrowing and significantly increase the cost of credit over time. In a tough economic environment, this can create a cycle that becomes increasingly difficult to break.”
This is why credit health is a cornerstone of financial wellness. “Understanding your credit score – knowing where you stand and how lenders view you – empowers better decision-making and helps prevent small challenges from becoming long-term problems,” says Ndimande.
Digital tools are playing an increasingly important role in this process. Accessible digital credit reports and financial wellness platforms make it easier for consumers to track, interpret and actively manage their credit profiles. Through Sanlam Credit Solutions (SCS), Sanlam is advancing financial inclusion by helping consumers better understand their credit standing and take practical steps toward healthier financial habits.
Practical tips to manage credit in 2026
As South Africans navigate the year ahead, a proactive approach to credit can make a meaningful difference. Ndimande shares five practical tips to support healthier credit management:
1. Track your credit score monthly using reliable digital tools to stay informed and spot changes early.
2. Prioritise paying at least the minimum on all accounts and avoid missed payments, which have the biggest negative impact on credit scores.
3. Reduce reliance on short-term, high-cost credit where possible, especially for everyday expenses.
4. Set realistic budgets that account for high-spend months like December and the pressure that often follows in January.
5. Consolidate or restructure debt early if repayments start to feel overwhelming, rather than waiting until financial stress escalates.
“All-in-one tools that combine budgeting, credit score tracking and financial wellness insights can simplify this journey,” says Ndimande. “The earlier consumers engage with their credit health, the more options they have.”
Looking forward, credit trends are expected to continue shifting toward more digital lending, alternative credit scoring and increased regulatory focus on responsible borrowing. For South Africans feeling overwhelmed, support is available. “Start with checking your credit profile, reaching out for debt assistance early and committing to consistent, positive financial behaviours,” says Ndimande. “Improving credit health doesn’t happen overnight, but small, consistent steps can unlock better access, lower costs and greater financial confidence over time,” she concludes.
