Do you have prescribed debt? Prescribed debt can be explained as old debt that has not been acknowledged over a period of three years. More specifically, a debt is prescribed if: You have not acknowledged the debt in the past three consecutive years, either in writing or verbally You have not made a payment promised […]
31 March 2015
When you signed up for debt counselling, did you ever think about the real reason which led you to signing up?
Debt happens to everyone. Consumers get into debt due to unforeseen circumstances such as disability, retrenchment, divorce or due to conspicuous consumption and poor money management. Most of the time however, consumers get into debt because of the latter. They fail to draw up a monthly budget and stick to it.
DebtBusters debt counselling process is designed to assist you with your spending habits by teaching you how to make responsible choices around money. In order to ensure that you build a brighter financial future once you exit the debt counselling process, your DebtBusters debt counsellor will keep you up to date with the best way to build a financial plan.
To make sure you remain committed to making responsible financial choices and keep in control of your finances while under debt counselling, following these simple money management tips:
- Make your full monthly debt rehabilitation payment each month.
- Stick to your debt counselling budget and do not spend more than the amount your debt counsellor has advised.
- Speak to DebtBusters client service consultants for any information you might need regarding the debt counselling process.
Once you have successfully progressed through the debt counselling process and have managed to pay off all of your debt, make sure that you leave your old money habits behind and avoid the following:
- Lack of budgeting
- Lack of emergency/contingency funds
- Lack of financial planning
- Spending more than you earn
- Purchasing on credit – Applying for more debt once you are debt free is walking a slippery slope and be handled with caution. Think about the countless times you may have wanted to purchase something, or take a vacation but couldn’t due to your over-indebtedness. You have come so far financially, why would want to put that stress and strain on yourself and your family again?
Plan towards the following end goals:
- Improving your credit score – manage your finances responsibly and always keep your credit score in mind.
- Remaining DEBT FREE and in control of your finances.