08 Jul The Debt Trap: The wake up call
We are increasingly seeing a cycle of people living from loan to loan, and never spending their own money as they have fallen into the debt trap. It has come to a point where debt counsellors and other legal service providers are trying to rescue these consumers by pursuing legal cases against credit providers.
As dire as this debt problem is, a perpetual living off credit is usually one of the first clear signs that you, as a consumer, have a problem. You have less autonomy as you become a slave to loans and credit providers, if you’re using borrowed money to purchase essentials for your household and life in general, you have to consider what will happen when you no longer qualify for debt instruments. You have to figure out how to get out of debt before this happens
The earlier you begin on your journey to financial dignity the better, as you might still find yourself exposed to more favourable remedies such as debt consolidations and debt review. The longer you wait and deny debt rescue, the longer it takes for the debt relief to be instated and start working for you. You may find yourself in a situation where your creditors initiate legal action against you and lose your most valuable assets:Your house your car, household items and a good credit record.
The first step is to admit to yourself that cutting an expense here or there will not salvage an issue it took months to get into. Payday loans, credit card debt, long term personal loans all have the same effect of draining your month cash flow and you are forced to refinance with other payday loans, credit cards or long term loans to finance the ones you have. Resist that temptation and get in touch with Financial Reach South Africa for a free financial assessment