Five signs that you need debt counselling

4 March 2019

Let’s face it, life can be expensive. You can go from being on top of your finances to drowning in debt very quickly – whether it be due to unforeseen medical expenses, a terrible car accident, loss of income, or simply not being able to keep up with day to day expenses. For this reason, it’s important to be aware of the tell-tale signs that you may need help managing your debt.

Here are five of the key warning signs:

  1. You make use of credit to pay for monthly expenses: If you find yourself relying on credit, such as store cards or payday loans, to pay for basic monthly expenses like food or fuel, you may be in over your head. It will only be a matter of time before you max out your credit and start doing serious damage to your credit record.
  2. You haven’t managed to save: While the concept of saving may be familiar, the reality of it may not be. For many South Africans the practice of saving is near impossible as their debt repayments are simply too high. If you can relate, then it may be time to seek help with your debt.
    However, there is a difference between having no savings and being unable to save anything. Having no savings could be the result of poor financial management, whereas being unable to save because you simply don’t have the funds, could signal being over-indebted. In this case it is advised to seek professional help.
  3. You’re taking out debt to service debt: Whether you are borrowing from loved ones, paying your clothing accounts using your overdraft, or taking out payday loans, it is never indicative of a healthy financial status. If you’re unable to afford your debt, it is a big problem that is only made worse by the vicious cycle of taking on additional debt.
  4. Your debt is haunting you at night: Financial stress is arguably the worst of the lot! Much like any other stressor it eats at your sub-conscious, eventually causing you to be unable to sleep or function properly. This could also see you falling into a state of depression and impact your immune system.
  5. You’re behind on payments: The game of catch-up when it comes to repayments is exhausting. You may simply see it as a once-off decision, but five months down the line and after quite a few calls from the creditor, you’re simply unsure where to turn.The fact remains that if you are unable to make a payment this month, there will be even more pressure on your finances the following month. If you can relate to any of the above, you should seek help regarding your debt immediately. DebtBusters will walk you through our sophisticated debt solutions. These include debt counselling and debt consolidation.

    We know that acknowledging you have a debt problem is a big step, but if you are serious about moving towards a debt-free life, you need to talk to a professional who is equipped to help you.

Contact us on 086 999 0606 or email info@debtbusters.co.za for a free debt assessment.