According to the Consumer Credit Market Report released by the NCR in September 2013, in South Africa there are currently 20.21 million credit active consumers of which 9.69 million have impaired credit records and 37.69% of unsecured credit accounts are out of date and in arrears. Debt is becoming a major problem in South Africa, […]
27 August 2015
When it comes to personal finance there are many South Africans that are walking around in the dark, wondering where their money went. Month after month they receive their pay checks, blindly pay their bills, and then struggle to scrape any leftover cash together to pay for everyday expenses like food, transport and electricity, which in winter months tend to be higher than normal.
“There are none so blind as those who will not see” – John Heywood
With Spring finally here, you have an opportunity to start fresh by getting your financial affairs in order. DebtBusters is offering you a chance to start over by taking a closer look at your debt situation. You have no more excuses for turning a blind eye to your debt situation.
Spring Clean your finances today with a FREE Credit Check and Debt Assessment from DebtBusters
A credit check is where you need to start. It will open your eyes and show you exactly where your financial problems are. Find out your credit score and if you have been blacklisted by anybody. A credit check is your gateway to financial health. Too many South Africans don’t review their credit report annually and are later surprised when they don’t qualify for credit or are suddenly saddled with a judgment for an account they were unaware of. A credit report gives you more than just a score, you can see:
- How much you owe
- How many payments you have missed
- If anyone has taken legal action against you
Furthermore, with a DebtBusters debt assessment, you can find out if you are over-indebted or not. DebtBusters will help you to develop a debt repayment plan specific to your situation. This can be a fresh start for you and your family, free from debt stress.
There are two ways to get a copy of your Credit Report
From any Credit Bureau – you are entitled to TWO FREE CREDIT REPORTS per year from any credit bureau. All you need to do is go online, visit their website(s) and download your report.
You can call DebtBusters and we can do it for you. Our systems are integrated with the Credit Bureau and we can do everything for you over the phone.
Understanding your Credit Report
There is a lot of information on your credit report- including numbers, abbreviations and terms that you may be unfamiliar with. Generally a credit report is broken up into a section relating to your personal information, credit history, enquiries you have made and adverse information e.g. judgments.
The section that is of great importance is the credit history which will state the name of the creditor, when the debt was taken out, the balance on that account and whether the account is paid regularly. Take note of this section because this will indicate how well you manage your debt. If you have defaulted on any accounts, you will see it in this section.
Watch out for Identify Errors
After you have perused the report identify any errors that reflect; they can range from accounts that are not yours, accounts that have been paid up or delinquencies that should have aged off. If you find a mistake you will need to contact the credit bureau and dispute the information. Having adverse information can result in you being unable to get credit.
Remember, after two months, credit bureaus are required to remove information relating to paid-up judgments received by credit providers.
Prioritise paying off the right things first
Once you have seen and understood the contents of your credit report, you need to identify ways in which you can improve it. Start by paying off the right debt first – this could be judgments or accounts that are in default or arrears. Your goal should be to remove obstacles that will prevent you from obtaining good credit. Ensure that you keep GOOD credit and get rid of BAD credit. As a benchmark, you should be using approximately 30% of the credit available to you.
Ask for help from DebtBusters
There is no point in being overwhelmed by your debt. If your situation is teetering towards over-indebtedness, you can manage it by seeking a debt solution. Avenues like debt review or seeking advice from a financial planner can help you get there.
If you are financially stressed and struggling to pay your monthly debt repayments every month, give DebtBusters a call. Take advantage of our Free Credit Check and Debt Assessment offer today. Visit www.debtbusters.co.za and fill out the free call back form or call DebtBusters on 086 999 06 06!