New Trend for over-indebted South Africans
In 2015 it was found that more than half of the South African population’s active credit consumers are over indebted.
It is said that of the 19 million active credit consumers, 50 percent are over indebted, fifteen of the 50 percent are described as debt locked by having accounts in arrears within the first or second month after receiving the said credit freedom.
The New Trend:
What has become a sporadic rate of falling into the debt trap is when consumers themselves make debt to relieve themselves from debt. Many over-indebted South Africans opt for micro loans, fast cash loans or credit cards to manage their existing debt burden. These type of loans repayments leaves a consumer in a position that is extremely difficult to get out of. The loans may seem fast, efficient and easy, however they tend to soar in interest rates not immediately visible to the consumer at hand which could cause a world of chaos. So, if you’re thinking of trying to paying off debt with debt DON’T. It’s a trap that could sink you down deeper.
Taking Control:
Many consumers do not instantly realize quick enough their debt is getting out of control until it is too late. Do not be that person. Do not wait until you are in arrears and struggling to get out when it’s too late. Take note of your expenditures. Take note of the availability of your credit. Seek help immediately. Contact a Debt Check consultant and immediately take control of your debt before it takes over you.
New Active Credit Consumers Become Easy Bait:
Most time young adults entering the working world are so overwhelmed with the new found financial freedom, salaries and unprecedented spending they cannot financially be responsible. These young adults new to life without boundaries, rules or any guidance at times are easy prey for hungry corporate reps selling the ‘latest’ or ‘high tech’ product. Working their sales propaganda on these new consumers works as they usually fall for it.
For advice on how to manage your debt more effectively, give us a call at 0861 111 159 or mail us at info@debtcheck.co.za