18 Sep Most people have debt, it is how you manage it
As trusted Debt Counsellors who provide tailored services to consumers facing excessive debt issues, we at Debtco Group are here for you. Over the years, we have worked with a range of client’s facing over indebtedness, and have found that having debt is common – the expensive demands of our day to day lives make it nearly impossible to avoid debt altogether. What sets those who struggle with debt apart from those who do not is the way the debt is managed.
It is important to know your limits as a South African consumer, when it comes to acquiring debt and honouring your financial commitments. Your budget should be able to easily accommodate the additional monthly instalment that comes with a new loan, account or credit card. You should also take time to consider the implications if you should find yourself suddenly unable to afford the monthly repayments – first make sure that your income is secure, and make sure you’re aware of the associated interest rates. If you are struggling to make it from month to month as it is, see this as a warning sign that taking on new debt could leave you over indebted, where you risk facing legal action and the stress of demanding financial obligations that you’re unable to keep up with.
Most people have debt, and it is how you manage it that will prove imperative. When considering taking out a loan, first take a long look at your income, important living expenses and any debt that you already have. It also helps to avoid debt unless it is absolutely neccesery, given steep interest rates that can easily set you back.You will want to be certain that any new financial commitments still leave you with enough money to fall back on your feet, should something go wrong. Always round up your expenses when drawing up a budget, plan for the worst and allocate a certain amount for a rainy day – this “rainy day fund” gives you the peace of mind in knowing that even during a difficult month, you have some money put away to pay back all that you owe.
While Debt Counselling is an effective way to overcome debt if you are declared over indebted, it is much simpler to avoid falling down the rabbit hole of unmanageable debt to begin with. Once you’re in over your head, spiralling further into debt happens almost without warning, bringing with it stress and potentially damaging your credit score. At Debtco Group, we’re all too familiar with the financial plight facing many South African’s earning an average income as the cost of living rises exponentially. By making good choices where money is concerned and carefully considering your affordability in relation to any debt acquired, you’re already giving yourself a better chance of managing your debt.