5 warning signs you might be ready to have a chat about Debt Review
With this COVID-19 pandemic still looming over everyone’s heads, and the fact that many businesses are struggling to stay open, the reality is that many South Africans are either losing their jobs or living off drastically reduced salaries.
“How am I going to afford to service my debt moving forward?” is a real question on the lips of millions of rainbow nationers right now.
Look, let’s get real for a second. Local banks came out right at the start of this Corona breakout with a lot of fanfare about how they would provide some assistance during these “trying times”, but the truth is that once the dust settles (and that is starting to happen), it’s business as usual: if you owe money, you better get ready to start receiving some unpleasant phone calls.
What if you simply don’t have enough money at the end of the month to service your debt?
Have you considered Debt Review?
Debt Review, also known as Debt Counselling, is a legal option available to all over-indebted South Africans. A registered Debt Counsellor holds your hand (not literally, but you get our drift) through the process of reducing your monthly debt repayments by negotiating directly with your creditors. They don’t make your debt magically disappear – they just try to make the repayments more affordable for you, to ease your monthly cash flow.
Should you be considering Debt Review?
Here are 5 warning signs you might ready to chat to a Debt Counsellor:
- Are you constantly in the red?
Are you constantly running out of money a week after you get paid? If you’re having cash flow problems and you’re in a permanent state of “I have more month than money”, then you might be completely over-indebted with no end in sight. This could be a red flag that you’re in a real financial pickle and chatting to a Debt Counsellor about Debt Review might be a great first step.
- Are you too afraid to have a credit check?
When last did you get a free credit report? Did you know that every South African is entitled to one free credit report each year? It’s important that you check your credit report regularly, because the document holds a lot of clues to how you’re conducting yourself in the credit space. All your credit obligations will be listed along with your outstanding balances and monthly instalments. If you’re afraid to get a credit check completed, then perhaps that’s a sign that you’re trying to hide from your current situation?
- Are you always leaning on family and friends for handouts?
If you find you need to borrow money from family and friends regularly, to meet your monthly expenses, it could be time to explore Debt Review. Always going hat in hand to people you love will ultimately end up in them resenting you and the relationship will break down. Rather deal with the real root cause of the problem which is: “Why am I always running out of money?”
- Are you tired of creditors calling?
If your phone constantly rings and the “private number” that pops up makes your blood run cold, or the final warning emails are burning a hole in your inbox, then it’s probably high time to consider the Debt Review process. Besides the many benefits of Debt Review, a Debt Counsellor can get these guys off your back and you can rest a bit easier.
- Are you trying to take out credit and being declined?
If you’re over-indebted or not making the required monthly debt repayments, your credit report will highlight this to creditors, and you’ll find that any new credit applications are being declined as a result. If this happens to you, then you know that you’re all out of luck (and bucks) and the time is perfect for you to enter into the Debt Review process.
For those of you who are still gainfully employed and successfully breathing through your facemasks, Debt Review is a real and plausible option to help you get through these tough times.
Until next time,
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