Breaking the debt cycle
Debt i s not a l ways a bad thing. But unfortunately, it can bring out the worst in us, f inancially speaking. Instant access to money we didn’t earn is very tempting, but debt obligations often result in a soul-crushing cycle of escalating spending and repayment.
Avoidance may s eem easier t han dealing with t he realit y, but often it also makes the reality appear a lot worse than it is. Once you’ve had a look at your f inances and taken a deep breath you can start drawing up a plan of action.
Theunis Kruger, head of unsecured l ending at Standard Bank, points out that credit providers also have an interest in helping you pay off your debts. “If you are feeling overwhelmed and finding it difficult to manage your debt, it ’s worth remembering t hat credit providers are normally willing to f ind a solution to help consumers. Credit providers would rather consider alternatives such as extending t he credit period so that customers can manage payments rather than default and never repay.”
He says that being honest about your debt is the f irst part of taking r e s ponsibi l i t y f or past s pending transgressions and embarking on the road to mastering your debt. KRUGER ADVISES THE INDEBTED TO FOLLOW THESE STEPS WHEN YOU REALISE YOU MIGHT FALL BEHIND ON REPAYMENTS:
Look at your list of creditors and set up meetings with relevant creditors.
Explain your situation and push to adjust your repayment options.
If one of your creditors is a bank, go to your branch and speak to a financial adviser that is dedicated to helping you restructure your loan.
THE CARDINAL RULE OF DEBT REPAYMENT