If, after deducting your living expenses from your net salary, you have less cash left than what is required by your loan instalments, you may be over-indebted and in need of debt review.
Key Signs of Over-Indebtedness
If you are...
- ...feeling out of control;
- ...two to three months in arrears on your instalments;
- ...struggling to pay your monthly debt repayments and not sure what to do; and
- ...constantly getting calls from credit providers, debt collectors, and lawyers demanding payment;
...you are likely over-indebted.
I'm Over-Indebted. What now?
A lot of people hesitate to make the needed changes even when they see their credit problem getting worse and worse. Most people with debt mistakenly think that the answer to their situation is another loan. But more borrowed money to throw at the debt problems you already have is not the answer. Instead, you have to make radical changes to change your underlying behaviour. You need to drastically cut your expenses. If you have already reduced your spending and can’t earn more, but still struggle to repay your creditors, then the good news is that you still have options which can help you, such as debt review.
How Can Debt Review Help?
Debt review, also called debt counselling, is a programme introduced by South African lawmakers through the National Credit Act No. 34 of 2005. Debt review aims to assist over-indebted consumers and also to identify and profile cases of reckless lending with the aim to get the cases suspended. If you are overwhelmed by debt and need help, don't hesitate to reach out to Debt Sage, so our consultants can assist you.