BANKS say too many South Africans are not paying their debts, and advise consumers to at least pay a minimum of what they owe to save on interest charges.

First National Bank credit card chief executive Jacques Celliers said banks were worried about a trend of defaulting on payments by customers.

Celliers said a 5percent payment of overall debt made a difference.

He said: "Paying, at the very least, the minimum amount due on your credit card is essential for keeping interest charges to a minimum.

"Letting a credit card go unpaid also negatively affects the credit worthiness of the customer."

Celliers added that consumers should take the first step and inform their bank if they are having problems with payments so that these can be adjusted.

Sizwe Nxedlana, an economist at Standard Bank, said that consumers should avoid incurring more debt and try not to use their credit cards to buy luxury goods.

"The best thing to do right now would be to try and pay off credit cards and any other unsecured debt that attracts high interest. As an extra measure, consumers can consolidate their debt into one account and try to pay down their home loans."

Dawie Roodt, chief economist at Efficient Group, said the simplest thing for consumers to do this year in light of high interest rates and household debt would be to "budget, save and don't borrow".

Virgin Money credit product director Gavin Muller said consumers could avoid defaulting and interest charges by paying off the full amount owed.

Muller said: "The best thing is to not miss a payment. Unfortunately, a lot of people after the festive season spend don't have enough money to pay off the full amount owed.

"We have found that most of our customers are forgetful payers, so the use of debit orders means that you don't have to stress about remembering to make a payment."

Graeme Holmes, Nedbank's head of consumer card services advised consumers to only make purchases up to a value they can afford to repay.

He said: "Your credit card statement will keep track of all your purchases and assist you in understanding what and where you are purchasing to better manage your expenses.

"It is usually not advisable to use your credit card for acquiring something that will depreciate in value or be consumed immediately," he said. Clothes, groceries, a holiday or entertainment fall into this category.

"The items you buy on credit should last longer than the debt, even if the assets are depreciating in value, for example furniture." - Additional reporting by Lihle Z Mtshali