Escalating personal debt is a serious problem for so many South Africans. Wonga SA advises that we should first become acquainted with the various kinds of debts. It is important to recognise that some debts are okay if managed intelligently. And others are just downright bad for you.
The first thing you can do to solving your debt problems is to say ‘No’ to incurring more of it. In simple terms, stop placing yourself in further financial difficulty by seeking out more credit. If you are considering debt consolidation think very carefully first. It may not be beneficial in your particular situation to take out a loan based on increasing interest rates in order to pay off accumulated debts.
Secondly don’t rely entirely on people you know for advising you how to deal with your debt problem. Frankly, the best advice on sorting out your finances will come from those who actually work with money. The National Credit Regulator or NCR is the best place to start when searching for information about controlling and alleviating money problems.
Make it a point to never ignore your creditors whoever they may be. So when you realise you might have difficulty paying up an account, for example, take the initiative to call them up and discuss the situation. You’ll find many credit providers will be open to the idea of reducing your monthly installments. This way you can give preference to those accounts which need settling earlier while still making sure the remaining ones are at least paid on time.
Most importantly you should transform your intentions into dedicated practical effort. Make a plan to get rid of debts and then stick to it like glue. Only by consistently working towards financial freedom will you eventually get there.