Poor financial planning skills and the lack of financial advice has left many South African consumers in poor financial standing, whereby they are ridden with debt and are struggling meet the interest payments on their debt, let alone payoff the debt itself. Indebted consumers are also failing to address the negative impact their ‘living for […]
27 November 2012
Some of the common debt pitfalls for indebtedness include:
-People assume the interest rates won’t go up when they buy a property and then buy something above their financial means.
-Men go to microlenders to finance lebolos, saddling a new marriage with debt.
-When their house gets repossessed, people are too embarrassed to down-grade to a smaller, cheaper place but instead move into a high rental option to feed their egos.
-Many car owners who purchase expensive “status vehicles” do so by using “balloon payment options” to afford the monthly premiums. What’s worse is we have witnessed these selfsame consumers unable to purchase new car tyres and resort to trading in the car, resulting in further losses.
-If your creditors are getting on your case, it’s because you are withholding money you owe them. Many consumers will pay the creditor who shouts the loudest. This random debt repayment only compounds the total amount owing with penalty interest, collection and attorneys fees.
-Once the creditors start hassling you, you agree to their payment terms and conditions with drawing up a household budget, so again you’re relying on guesswork.
-Couples only talk about money when it has run out. Until they adopt a proactive approach to their money, they will continue to create chaos in their relationships.
-Being married in community of property can also take a toll, because then you are responsible for each other’s debts. “If one of you is not financially responsible and not transparent to the other when it comes to money issues, that eventually creates problems. Joint bonds are also a culprit, because if you signed your name to it, it’s your financial problem. This is especially true when the one party is willing to go under debt review and the other one doesn’t because of the implications of being listed with credit bureaus.
Please contact DebtBusters on 0869 99 06 06 for assistance with your debt problems. Alternatively visit our website www.debtbusters.co.za.