Should banks give credit cards to university students?

Dear Member

We have over 9,4 million South Africans with an impaired credit record. Now we have banks giving credit cards to students.

Our schools don’t teach us about money so most students don’t even understand the first thing about a credit card. In this country, we have over 600 000 unemployed graduates.  Over 50% of students who enrol for studies do not complete their studies on time. Some students never even finish their studies. Even if they finish their studies, there is no guarantee of a job afterwards. So I have to ask the question, is this NOT reckless lending? Most parents do not save for the university education of their children so most have to take NSFAS loans to pay their fees. What happens when these students cannot repay their loans? Do they become blacklisted even before they have jobs? Are parents who are already struggling going to be held accountable for these debts?

When you are blacklisted, banks and other employers will NOT give you a job. So what are the chances of these students getting jobs with already poor credit records?


As parents, we have a duty to educate our children about money. Getting into debt before you even have a job is NOT the right thing to do. I hope all parents will be telling their children not to take these credit cards. In fact, there is a lot that we as parents have to teach our children about money. For me, this is a grand example that we cannot leave the financial education of our children to schools, universities and banks.


You are adults and you must understand the consequences of getting into debt. Your first priority when you get a job should be to save your money NOT to get into debt. If you studies through a student loan, then your focus should be to pay off your student loan as soon as you can. Do yourself a favour, say NO to credit cards or other forms of debt. Learn as much as you can about money while you are still studying so that one day when you start working, you know how to use your money wisely.

Please write to me at and let me know if you think it is right for banks to give credit cards to students

To find out more about credit cards and before you take any credit card, please read pages 24 – 25 of the book From Debt to Riches. My view is credit cards and personal loans are responsible for high indebtedness of millions of South Africans. You should avoid these expensive debts at all costs and only have them to fulfil a dire need.

From Debt to Riches


Hello Phumelele,

Thanks for your book “From Debt to Riches”. It is so practical. I think that is your best gift to humanity. I have just finished reading it. I have given a copy to my wife so that we start speaking the same financial language. I will give copies to all my friends on their birthdays.


Prince Daara || Senior Manager || Dishsat Electronics
Congratulations on your book. What attracted me to your book is the cover…simple and nice. I hesitated buying though because I believed I don’t have much debt. 3 months later I felt the urge to buy the book because I am naturally curious. I am not giving my copy away as I need to refer to it now and again, I actually recommended the book to all my friends and colleagues.

Viwe Mgidi

I struggled to get a copy of your book as the bookshop near me didn’t have a copy but finally I managed to get your book. Thanks very much. I am on my way to financial freedom – climbing still very “steep” though (like climbing Mt Kilimanjaro), but am very happy. Overdraft I have resigned, no more new debt “Lord help me”. Where was your book? Its better late than never! God bless, always.


Dear  Phumelele,

I just don’t know where to begin – I am just so awed with your book “From Debts to Riches”. I have always tried to get to read financial books, even Suzie Orman’s, but hey, they sounded so Greek to me. It frustrated me so much because I really wanted to get out of the debt rut, but did not have the know- how. Not only that, but to get out, stay out and even be well off while doing it.

I was so excited when two weeks back I went into CNA Alberton and your book was actually calling me to buy it. What I also like about it is that it is more closer to home as, written by a South African, the reader feels that you know what we have to go through.

I have even gotten my friends to buy it and sent WhatsUp photos of it to my contacts, for them to please, please buy it.

I am now starting on working on my budget again and hope for the best. I am currently practically going through Chapter 6 of your book in attempting to close as many accounts as I can.

Thank you so much for your beneficial read!!!

God Bless,


Morning Phumelele

Wow! I wish I read this book 2 years ago. I bought your book on Monday and just finished it this morning (I could not stop reading it!).  I have read a lot of motivational books to help me get out of debts, but none of them addressed my situation like yours. The only debt that I made for myself is a car, which I am currently owing R30 000. The rest of my R70 000 (personal loans) worth of debts were made to help my family survive after the family company collapsed in 2008. The family business is currently doing well and I was promised that my debts will be paid off end of this financial year.  I am a 27-year old Engineer (Btech degree) with 5 years’ work experience. I am going to follow all your teaching starting from next month to improve my credit score so that next year February I can start investing in property. I hope your book can be used in our schools’ curriculum (maybe taught as Life Orientation subject) before they make the same mistakes we made (rat race). Keep up the good work. May you also sell e-books at Amazon as some of us use Kindles to read this books (if it is viable for you).

I am going to buy a copy for my father too

Kind Regards


Warm regards



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