If you are feeling overwhelmed by how much money you owe there are ways and means of getting your finances under control. You are definitely not the only person who is overwhelmed by debt if you are living in SA, or anywhere else in the world! Credit bureaus in SA have in excess of 19 million credit users on their books and the outstanding debt stood at R1,23 trillion by June in 2011. Your debt will not disappear if you ignore it contrary to the belief of many – but there are various ways and means of getting your debt under control. Companies such as NCR will assist in showing you how to restructure your debt so that you can veer towards becoming debt-free.
There is such a thing as a good debt – for example investing in property that increases in value provided that you can service this debt. Bad debt on the other hand is everything you cannot afford and according to those experts that is paying off anything that depreciates, especially your car.
First look at your income and budget accordingly if you want to take out a loan. Deduct essential expenses such as transport, your home loan, savings, your insurance, electricity and food and then only can you see if you will be able to pay off the new debt.
In a perfect world you should have a little over after paying off everything in case of an emergency.
Here are a couple of pointers to take into account to find out whether you are out of control:
- If you need to borrow money to pay off existing debts.
- Cannot pay your debt or skip some repayments to pay your other debts.
- If you receive letters of demand from attorneys or creditors or have a judgment against you.
- You are thinking of debt administration.
- You cannot bear the stressful situation of constantly being in debt.
Remember that there is no dignity quite so impressive, no independence quite so important as living within your means – according to Calvin Coolidge, 30th president of The United States of America. If you find that you are drowning in debt, it might be a good idea to approach NCR to find out how you can take steps towards getting on top of your debt.