Don’t let financial anxiety paralyse you

Getting help is the responsible thing to do.

Debts make life difficult for SA consumers, especially with the uncertainty about the future and economy.

According to Benay Sager, from DebtBusters, real income has shrunk across all income bands, in some cases by 20 per cent compared to 2016 levels. To make up the shortfall, consumers are increasingly relying on unsecured debt.

ALSO READ:

 Managing back-to-school finances

“Although payment holidays provided some relief during the lockdown, when payments recommenced even consumers who had just been making ends meet found themselves struggling,” said Sager.

“Unfortunately, being financially burdened has now become the norm for many people.”

He said the combination of this, uncertainty about the situation the country is in, as well as uncertainty about the future, contributes to people feeling overwhelmed.

“The risk of this is that rather than address the problem, people go into a state of denial and do nothing or become paralysed by anxiety. This isn’t helped by the fact that South Africa is a society where many people avoid talking about debt for fear of being stigmatised.”

“It’s why this February, for National Debt Awareness Month, our theme is ‘get help if you’re not coping with debt – it’s the responsible thing to do’.”

Sager said South Africa’s debt counselling sector is world-class and well-positioned to provide support for people feeling vulnerable because of debt and not wanting to talk about their problems or cause stress for their loved ones.

“When you call a reputable debt counsellor registered with the National Credit Regulator, you’ll be dealing with a financial specialist. The first thing they’ll do is an assessment to see whether debt counselling is something that could help. This happens in a safe space with an expert who considers the situation empathetically but objectively.”

Reputable debt counsellors will support consumers for whom debt counselling is an option and who decide to go ahead with the process.

ALSO READ: 

Best vehicle finance option for your needs

They will intercede with the creditor and provide help and advice throughout the process.

Importantly, they will also negotiate monthly debt repayment reductions, especially on unsecured debt, such as personal loans and credit cards.

This provides substantial savings on outstanding debts.

“If you’re feeling out of control or think you might be in financial trouble, it’s always best to seek assistance sooner rather than later. The feedback we get from many consumers is that they wished they’d sought help earlier because doing so made them feel in control of their lives and finances,” said Sager.