Thursday, 23 August 2007

Manage Your Debt Responsibly

top 10 tips for debt management
Hello all... So good to see that people are still reading the SA Property BLOG, and we're proud to say that it's now the number 1 portal and information station for all South African property and finance related information.

Seen as the only ongoing and exciting news in the world of property right now is the national credit act I though we'd put together a little list on how to manage your debt responsibly. We get endless phone calls and email from people asking us about credit issues that they have, and personal loan debts and it's quite sad to see that so many people are in the financial dilemma's that they're in...

So once again in an effort to help South Africa become and debt free society here's the TOP 10 yes TOP 10 debt management tips and hints that help people Manage Their Debt Responsibly.

  • Avoid Making Impulse Purchases - If you don't have the extra cash to blow, avoiding blowing it. Instant gratification is all fine and well but it ain't that great when that bill arrives and you realise you can't afford it

  • Speak to your creditors - When you're in financial SHIT, speak to your creditors, tell them the predicament you are in and come to a mutual agreement and understanding, even if it means dropping your monthly payments. Missing payments will affect your credit ratings.

  • Get credit only from Registered Credit Providers - Stay away from loan sharks unless they are registered.

  • Always make your monthly repayments by your due date - NEVER MISS EDGARS ACCOUNT REPAYMENTS. These guys will list you in 2 ticks...

  • Pay off your credit - Any extra money that you have at the end of the month, use to pay of your credit. If you have, put this cash into your bond account. At 13.5% interest you won't get better rates anywhere else.

  • Kill your small account first - Alot of people say kill the loan with the highest interest rates first (normally your bond account) but I'd suggest killing the smaller ones quickly, thus reducing the amount of accounts to pay off.

  • Moving Debt - Don't move short term debt to long term debt to increase your monthly cash flow, your interest rates will increase

  • Don't stand surety for anything unless you can handle it - This is a killer. People sign surety for other people without realising that they become responsible for repayments should the other person for whatever reason not be able to pay. WATCH OUT!

  • Live within your means - Don't over commit.

  • Know your credit ratings - Check yourself out at least once a year. You can get a free credit check on your birthday from the credit bureaus. Otherwise Wizard can get you credit checks for a price of R125.00. See Credit Checks for more information


WizardMan Out!


Anonymous said...

I think many people would find this blog very important and helpful, because it's detailed and straight to the point. Especially for those who have debts and for those who are planning to have debts in the future. I'll share with you an article "Home Loan after Bankruptcy – Is it Possible?", basically it's somewhat related to your blog. Feel free to check it out. Oh, by the way, great post!

NoTiTo said...

I agree with sweet apple. This is an important site, sharing that valuable information that has been somewhat hidden. Check this article for more information on your credit history.

clarksburg said...

When someone is dealing with monay troubles it is easy to lose control and end up creating more debt while trying to pay off existing debt! If someone finds themselves in a situation were they are living outside their means they should get some advise from professionals who can help them with their problems and assist in implementing a debt consolidation programme.

Anonymous said...

I think I am slightly confused as to what exactly the differences between the different types of bonds there are. Are jail bail bonds similar to corporate bonds? Are there specialist bonds people for all the different types of bonds or can surety bonds people deal with any kind of bond? Also how would I go about getting bonded? Does it depend on previous financial information and if I have a criminal record will that affect anything?

jon said...

Can you tell me what Surety Bonds are? I have heard of Corporate Surety Bonds but I don’t understand what they are, can you help?

Ze Google Boy! said...

Well. If you click on your link it tells you everything....

Anonymous said...

I have recently went into every website in South-Africa i could find on debt-management. I discovered an add on the website of a person who did some research and created a book about what banks won't tell you? I lost this website address and was searching for this e-book as you could buy it for next to nothing, i think the book was called 10 Secrets or 12 secrets banks won't tell you. It is very important that we the consumer are protected and know what our rights are? So many people get retrenched or the company they worked for was liquidated like in my case? If you try to make arrangements they just dont listen, they keep on pushing you and calling you frequently to make payments and list you in two ticks? If it was a matter beyond your control that happened to you, why dont they rather help you in some way, to at least with a minimum payment untill you are at least back on your feet again or untill you have a new job? Is there not a type of policy you can take out that when you do loose your job it can protect/provide you with a sum of money paying out to at least survive with all your bills you have to pay untill you find a new job?

WizardMan said...

Thank you for bringing this ook to my attention. I will most definately run out and look for it.

The problem is that the banks were all to quick to give whatever the hell they wanted to give clients without thinking what the consequences were.

Now they're back tracking trying to save their skins but at the same process not willing to help people out cause it's just too much effort.

Banks should be willing to assist clients in financial trouble as they're the once who put them there in the first place.

In terms of a policy to pay you out, the only one I know is a Discovery Health type life cover policy but this will only pay you out for dissablity and severe or cronic health problems.

Having said all that. I do believe that the banks are under obligation in terms of the new credit act to assist clients who are in financial distress (not just banks but all financial institutions registered to provide credit to the public) and under these laws they have to make ammendments to assist those not able to pay by means of giving leeway and payment relief.

Give the NCA a call and see if they can't assist you in any way.

0860 627 627

Jay Arrowood said...

There are literally hundreds of bond types available for individuals or businesses in any industry.

I would suggest consulting with a surety bond broker before you purchase to ensure you get the right surety bond that you need.

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