CAPE TOWN - Digit, an automatic savings mobile app added a new feature which allows users to pay off their credit card debt, reports TechCrunch.
The app which was reportedly designed by CEO Ethan Bloch with the intention of saving R12.3 billion for its customers now provides another means of paying off credit card debt.
The initial use of the app was to connect to users banking accounts. By doing so, the app’s software then inspects income and spending habits. The money will then be put aside to ensure that it does not impact on the account.
How this new feature works
Users create a “credit card debt” goal in their apps settings. Then, they activate the Digit Pay service. Digit will then automatically save money from the users linked checking account. This funds will then be used to pay off credit card debt.
Users will be able to pay off their credit card debt by using their digit account.
This new feature will hopefully assist nearly 75% of Digit’s customers who have accumulated credit card debt.
The apps new focus will now strictly be savings and credit card debt.
In other credit card debt news, according to a report released by StatsSA, South Africans became a lot poorer between 2011 and 2015, a trend that is expected to continue.
Meanwhile, in other credit news, according to a report released by StatsSA in March this year, South Africans became a lot poorer between 2011 and 2015, a trend that is expected to continue.
Many South Africans struggle to make ends meet and turn to credit to finance their day-to-day needs, leading to the misuse of credit. This is evidenced by the household debt-to-disposable income ratio of 72.6% in the second quarter of 2017 - a significant jump from 54.1% in 2000.
According to Vera Nagtegaal, executive head of Hippo.co.za, while credit can be an empowering tool, financial literacy plays a big role in understanding how it makes one’s life easier. “The impact that a lack of financial literacy contributes to the shocking debt numbers can’t be ignored.”
“Credit isn’t necessarily bad – but how one uses it could determine how well or poorly it will serve you,” Nagtegaal says.
She explains that consumers should empower themselves with the knowledge that can help them to differentiate between good debt and bad debt.
- BUSINESS REPORT ONLINE