Petrol prices, new carbon tax, staggering unemployment rates, SA rated as one of the least competitive economies in the world – things aren’t looking good for the South African consumer, and experts say it’s not getting better any time soon. In fact, the central bank warned on Wednesday that consumer defaults are growing, meaning that a larger percentage of consumers with debt are defaulting on at least three payments. Their findings are supported by a review done by the Johannesburg Citizen newspaper which confirmed that bad debts are turning the lives of struggling families into a nightmare, with an estimated 550,000 consumers having filed for legal debt review.
For anyone currently struggling with debt, now would be a good time to be honest with yourself and the probability of getting out of debt in the near future. To help you make that decision, we’ve put together a list of signs that are a good indication that you’re ready for debt counselling.
10 signs that you’re ready for debt counselling:
- Defaulting on your last three debt repayments.
- If you’re going into debt to buy basics like groceries (paying for grocery shopping on your credit card).
- If your debt totals more than R75 000.
- You’re constantly thinking about money and what you’re going to do before the next payday.
- If you’re considering a debt consolidation loan because you believe paying a single repayment every month will be better than paying many.
- You’re receiving threatening calls from creditors, debt collectors or your creditors.
- Debt is starting to affect your mood and relationships.
- More than 80% of your salary is going towards paying off bad debt.
- Any assets have been repossessed.
- Whenever money is deposited into your account, creditors “cash grab” and you’re left with next to nothing.
If a few of these signs struck a chord with you it’s time to let a debt counsellor review your current financial situation. DebtCare’s online applications are free of charge. You can also request for a callback or send us a whatsapp on 082 800 8423