The more money you owe, the less likely you will be able to repay your debt. The only good debt is money that you borrow in order to make more money, like an investment. Make sure your finances are organised, know who you owe money, decide which debt to pay off and put together a monthly budget.
There are various options available when you find yourself feeling overwhelmed by debt. Make sure you choose the right one for you.
In an over-indebted country such as South Africa, learning how to save effectively can be just the secret weapon you need to stay out of debt. Yes; it is challenging having to choose between saving for an emergency and paying off debt, but it is important that you do both.
When you have high-interest consumer debt, paying it off first can help you solve ongoing problems with managing and saving your money. To many South Africans, a debt-free life seems like a dream, not a reality. But, it can be done with just the right level of commitment and discipline.
Simply put; you need to avoid loans at all costs when you are under debt review. Taking a personal loan when you are under debt review can cost you everything you’ve worked very hard for.
When the National Credit Act (NCA) introduced debt review in 2007; many South Africans have since been assisted and prevented from being blacklisted, having their assets repossessed, or living with a heavy burden of debt.
You probably know that your credit score is a big factor in getting a loan, but you may not realise just how much of an impact it can have on all aspects of your financial life. Your credit score can influence everything from interest rates and insurance premiums to apartment rentals and even job eligibility.
The festive season is almost here, and it’s been one challenging year. No one could have predicted what 2020 had in store for us. The Covid-19 Pandemic changed the world overnight.
Not only were we impacted emotionally but our financial wellbeing was deeply affected. We saw retrenchments and unemployment. People were on reduced pay and there was a general uncertainty of what was to come.
Lessons learnt from our strategist Sandisiwe Yengeni
As the year draws to a close (thank goodness), I have found myself reflecting on what 2020 has done to my financial plans. I came into the year with big goals of saving, especially towards retirement, travelling, and making sure I build up that safety net for rainy days. I was doing quite well, then the pandemic hit, and my well-laid plans went out the window.
As hard as it may be during challenging times, do not miss a debt review payment. Debt review is a legal process, and your payment plan has been accepted by all your creditors. A court order has also been granted.
Tapping into your retirement savings early can have a long-term devasting impact. If you find yourself changing jobs with the option to cash out your fund to pay off your debt. Don’t. You will accumulate more debt when you stop working to fund your retirement.
National Credit Act. Act prescribing rules and regulations for the credit industry and sets the groundwork for over-indebtedness and debt counselling.
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