Are you in Control of your Debt?

There is a fine line between a tight monthly budget that is working for you and your family, and one that is riddled with unnecessary debts and expenses. Knowing if you are in control of your debt is important, because the consequences of losing control of your debts can be dire and life altering. At Debtco Group, we provided a specialized Debt Review service to South African consumers faced with debts that are no longer manageable.

Are you in control of your debt? If you are asking yourself this question, it is possible that warning signs are already surfacing to prove that you are in trouble. For one thing, you should be able to easily manage all your existing debt instalments without falling behind – if you cannot, you could be over-indebted. Unfortunately, not all debts are created equal and bad debt have a way of crippling you financially, sometimes over a long period of time. A few payday loans can lead to unsteady finances that require you to take out a larger loan to simply put food on the table or make it to work and back. At this point, you are already losing control of your debts. Acquiring more debt to pay back existing debt is never a good thing.

It is important to always consider your affordability when taking out a loan. Just because you have been approved for a loan, does not mean you should enter into the loan agreement – many creditors have been found guilty of reckless lending, where a thorough affordability assessment was not conducted before the loan was granted – as part of our Debt Counselling service, we will ensure that you were not a victim of reckless lending. Many loan agreements, store cards and credit cards are associated with high interest rates, where the amount you are essentially responsible for repaying is far higher than you realised. It might make sense in the moment to purchase gifts and non-essentials on your credit card, but these purchases have a way of catching up with you.

Debt makes sense when you are acquiring a loan that will help build profitability for you, or prove valuable to your life going forward – this includes a loan to purchase a home or to study. In many cases, vehicle financing is also necessary. As long as you live according to your means,adjust your budget and spending habits when committing to a new monthly loan repayment, and avoid acquiring debt for smaller day to day expenses, you should be in control of your debts. If you find that unplanned events in life suddenly make it difficult to manage your budget, check in with our team at Debtco Group to effectively address your debt concerns.

Our free Debt Assessment can show you if you are in control of your debts, or if your debts are controlling you. If you do require the help of a professional Debt Counselling service, our team at Debtco Group will work closely with you to provide a transparent solution to overcoming your debts.