Debt review eases financial pain — DebtSafe
In a survey, more than 50 percent of participants indicated they couldn’t make all their debt repayments.
The New Year has brought new challenges to the South African consumer – fuel and electricity price hikes, food price increases as well as the fall of the rand, influencing prices on importing products.
Wikus Olivier, Debt Management expert at DebtSafe, says consumers must try and streamline their spending habits. The company ran a survey about people’s spending and saving habits in the beginning of last year, and more than 50 percent of the participants indicated that they couldn’t make all their debt repayments and 40 percent said they overspent on their credit cards.
“This is concerning, because if someone misses a payment once, the repayments escalate and consumers have to take out loans to pay off other debt,” Olivier says.
If you really have no other choice than to take out a loan, select the shortest period that you can afford to repay, because it will save you money.”
He adds that it is worthwhile to pay a little extra every month, because interest is paid off faster and it lowers the amount borrowed.
A helpful hint if a payment can’t be made is to contact the credit provider and make a payment arrangement. Olivier warns that if you skip an instalment, you could get a bad payment profile and it will affect future credit applications.
What to do if you still can’t manage your payments?
If you have done your financial planning and still can’t manage payments, the next step is to contact a debt counsellor.
Don’t wait until it is too late. Enter the debt review process if you are unable to cope with monthly financial obligations,” Olivier adds.
Being in debt review is not a shame; it is a way to get out of debt step by step and to actually see the light at the end of the tunnel. It helps a person take control of debt and offers immediate financial relief.
“When someone enters the debt review process, credit providers can’t take legal action against them on arrear accounts. This extends to secured debts such as home loans and vehicle finance. Assets are protected from being repossessed or sold on auction,” he says.
Want to receive news alerts via WhatsApp? Send us an SMS/ WhatsApp message with your name and cellphone number to 079 413 8726.
Familiarise yourself with our WhatsApp service disclaimer.
Do you perhaps have more information pertaining to this story? Email us at randfonteinherald@caxton.co.za (remember to include your contact details) or phone us on 011 693 3671.
For free daily local news on the West Rand, also visit our sister newspaper websites Roodepoort Record, Krugersdorp News and Get It Joburg West Magazine
Remember to visit our Facebook, Twitter and Instagram pages to let your voice be heard!
