8 Signs You Need Debt counselling/ Debt review - 2019
Sometimes life begins to spin out of control and it's hard for you to keep up. Things that once seemed insignificant suddenly upset you and you snap at others even if they didn't do anything wrong. This could be due to your debt.
Have you ever considered debt counselling to deal with spiraling debt? According to the South African Reserve Bank (SARB) Quarterly Bulletin, March 2019, South African household debt rose in October to December 2018.
If you are experiencing one or more of the following signs you need to consider that you will need our debt counselling or debt review help.
You’re falling behind on debt payments:
Sometimes circumstances happen, which can lead to your debt repayments to creditors falling behind. An unexpected retrenchment at work, Salary cuts, an emergency or a divorce are just some of the problems that could lead to missed payments to your creditors.
The first sign of you needing help with your debt is when you are behind on your repayments to creditors. Not taking immediate action to remedy the situation will cause serious harm to your credit bureau score and report.
Credit Salvage will be there every step of the way with our debt counselling and debt review services.
Living from payday to payday
The saying living from payday to payday means it is a lifestyle in which a consumer is unable to save any money due to their debt obligations. Once you get to a point where you’re living from payday to payday, this is a sign that you are in trouble.
Unfortunately, currently many South African consumers are finding themselves in this nasty predicament. Waiting for your next payday is a prevalent element of the average South African consumer before they even reach the end of the month. As debt payments, food, transport costs, Eskom Electricity and living costs rise, it becomes increasingly difficult for households at the end of each month to have any disposable cash left.
Overspending
Some consumers will react when they feel stressed by spending even more money they don’t have. Credit cards are a means to ease the discomfort caused by insufficient funds to satisfy needs. Credit/ payday loans and credit cards can help you to forget about your financial difficulties by postponing the adverse economic effect and giving a mistaken feeling of economic safety. The sad news is that the payday loan and /or credit card account will eventually lead to debt/ unmanageable debt.
Other reasons consumers overspend and fall into debt
- Impulsive buying habits
- Spending without a Budget
- Frequent Use of Credit cards and store cards
You can't afford your living expenses without using a credit card or loan.
One of the tell-tale signs that you need debt counselling is when you have no other choice but to buy your monthly groceries on credit. According to the latest Old Mutual Savings and Investment Monitor, 30% of South Africans are unfortunately buying their Groceries on credit. Read the full article by clicking the attached link (Source Old Mutual)
Credit is normally used to buy large ticket items like appliances, vehicles etc. and for emergencies. Credit is not an ideal solution to finance daily expenses like groceries and fuel. You will easily fall into the debt trap by using credit for everyday necessities.
This indicates that you do not have enough money to support your current lifestyle. The income you earned might not be enough to service all account payments or it could be that your finances may have been mishandled, which created this over-indebted scenario. It is only a matter of time before things spiral out of control. To avoid this unhealthy scenario, it is imperative you take action to avoid any further damage to your credit profile and credit score.
You need debt review if you are hiding your debt from your spouse.
A sign that you have too much debt that you can’t handle is when you try hiding debt from your spouse. This is a sign that things are wrong, or things will become much harder in the next few months. If you don't open your monthly statements from your creditors because you don't want to look at your balance or you're going out of your way to keep your spouse from finding out about your debt.
To escape the pressure of your debt, you switch to drugs and/ or alcohol.
To avoid facing their debts, many people use drugs and alcohol to ease the pressures of being in debt. The higher drug and alcohol costs may even have led to these consumers being drowned deeper into debt. Getting our debt counselling help and our substance abuse referral program will be one of the first measures you need to take if you're going to get out of debt for good.
Unable to save money due to repayments to creditors:
If you are unable to save every month because your debt repayments are too much, then it is a sign that it will be time to call for help.
You need debt review if your debt is haunting you at night:
Are you getting scared or uncomfortable thinking about your debts? These financial worries and financial stress is keeping you up at night. This unhealthy stress will eat into your subconscious, which will be the cause of you being unable to sleep and to perform optimally during work hours.
Debt and especially unmanageable debt have a bad habit of placing stress, anxiety and even depression in its victims, who can, in turn, lead to problems with sleep. Sleepless nights caused by your debt worries might even interfere with the quality time you spend with your family.
These are the 8 signs we have identified over the years to look out for when you need to consider debt counselling or debt review. Get in contact as soon as possible once you experience any of the above. Credit salvage will help you alleviate all the above symptoms with our trusted debt counselling and debt review services.
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Sources - Other good reads
- Revolving credit vs instalment credit and credit scores - Credit Salvage
- Debt Review vs Credit Bureau Clearance
- Benefits of Debt Counselling 2019 - Credit Salvage
- What to do before considering debt Review.
- Credit Bureau Clearance Application Credit Salvage
- Credit Clearance in South Africa - Credit Salvage
- Debt Review FAQ