Thanks to the recent economic crisis, people are more familiar with debt than they would like to be. Unfortunately, they are also applying for debt review for all the wrong reasons – thinking they can avoid their debts when they really need to confront them with lifestyle changes.
Tackling your debt takes time and effort, but combining strategies and staying consistent can help you successfully dig your way out of debt. Here are some tips to help you get out of debt faster.
Managing your finances doesn't just mean monitoring the money going in and going out of your account each month. It also means considering what inflation will do to your purchasing power and the value of your debt.
If you are struggling with paying off your debts, you may be considering debt review and may hear differing opinions on the advantages and disadvantages of debt review. Let's look at the comment opinions.
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.
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.
Debt counselling is a regulated process by the NCR. The process protects consumers from their creditors as no legal action can be taken once the proposed repayment plan has been accepted. It provides an opportunity to regain financial control to avoid future over-indebtedness and at the end of the process a clearance certificate is issued, and the credit record is cleared
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.
National Credit Act. Act prescribing rules and regulations for the credit industry and sets the groundwork for over-indebtedness and debt counselling.
The global pandemic has not only changed our lives as we know it, but it has drastically changed the South African economy and in turn, our finances. South Africans have had to change their way of living to suit their new financial situation. Many have been left without any income for months, and are not able to afford the things they are used to, leaving us to make tough financial decisions that will affect our lives for years to come. Here are some ways to keep your finances going in our changed world.
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