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Manage Your Way Out of Debt

 

Many South Africans lead stress-filled lifestyles, unfortunately. Morning traffic, afternoon traffic, rising inflation, poor rand performance against major currencies, those ever-optimistic rating agencies, school fees, politicians, the never-ending increases in the cost of living, etc., all contribute to anxiety.

One of the biggest causes of our stress is, of course, debt. Such a small word, but so many life-changing consequences as it grows and entrenches itself in our daily lives. To only add to the burden of meeting repayments on a regular basis, just a few imprudent decisions could lead to it spiralling out of control in the blink of an eye.

The good news is that a well-considered and informed debt management plan could ease the burden, ensuring that your anxiety-laden, sleepless nights recede into the distant past.

One can think of debt management as an effective collection of tools that, in the hands of a knowledgeable professional, provide a solid lifeline to those sinking into the quicksand of payment defaults.

A trained and experienced debt management specialist will take the time to understand your unique circumstances, your income and necessary expenditures, and any other factor that may be relevant to structuring a debt management plan that works.

Debt counsellors have a thorough understanding of the South African credit provider landscape (including its many, complicated legal strictures). The latter expertise, when combined with his/her awareness of the remedies available and a mandate to advocate on your behalf, means that your debt management consultant is perfectly positioned to tailor a solution that’ll work for you.

The process begins with the collection of data; more specifically, a deep analysis of your current debt and monthly spending behaviours. An analysis of your debt will reveal much about which strategies can be best employed to lessen both monthly repayments and the total cost of the debt.

One of the first items a debt management specialist will look at is the interest rates on your loans. High-interest loans accrue increased debt very quickly – horrendously quickly, in fact. Although principal amounts on home loans are much higher than, for example, personal loans or vehicle finance, it may be possible to save money by concentrating payment efforts on a high-interest credit card debt (again, for example).

However, this isn’t an ironclad rule: if a principal amount is large enough, even a comparatively low interest rate will result in large payments that could get out of hand if not addressed properly.

You can break free from the credit crunch with the help of an experienced debt counsellor. Complete the online enquiry form for an assessment or get in touch for fast and friendly help to regain your financial freedom.

However, this isn’t an ironclad rule: if a principal amount is large enough, even a comparatively low interest rate will result in large payments that could get out of hand if not addressed properly.

Competent debt counsellors will advise you on whether a debt management plan should include consolidation.

To better understand your own position in terms of saving money by implementing sound debt repayment measures, consult the FreeMi app. It’s easy to use, and the insights it provides could, potentially, change your life.