Here is a list of the most common debt
pitfalls that South Africans tend to make – avoid these and turn your
Here’s
a list of the eight most common financial errors made by South Africans which
you should avoid at all costs:
·
Consumers automatically take
for granted that interest rates will not go up when they buy a property – this
is when they make the mistake by buying a property above their means.
·
Males in South Africa often
go to micro lenders to finance their “lobola” which means that traditional
weddings often start off on a bad financial note.
·
Having a home repossessed is
perhaps one of the most debilitating things that can happen to anyone, and
often people are too afraid of what the Jones’s will say; this leads to many
home owners dragging their feet to move to a smaller more modest abode.
·
The home that is
affordable is usually replaced by a rental option that is just as upscale and
as expensive – all this to save face!
·
Using a balloon payment
option to finance an expensive car is insanity, but it is done more often than
not. The sad reality is that many of these individuals driving around with
their expensive “balloon financed” vehicles cannot even afford to replace their
tyres; these cars are then traded in at a loss and in the end the car owner loses
a substantial sum of money.
·
Money is a taboo topic in
many relationships which is only discussed once funds have run dry - it is a
fact that many marriages break down to a lack of communication, especially when
it comes to money.
·
If you owe creditors money,
random debt payment is not the way to go forward – rather put together a solid
repayment plan and stick to it at all costs.
·
The creditor who shouts the
loudest usually gets paid first – remember to stick to your plan to ensure you
become debt free in the near future. And for heavens sake get a free credit report.
Don’t guess what you owe in total – work out
a plan, stick to it and work out what you owe your creditors in total. This way
forward will ensure that your credit record is corrected over time, making you
bond ready when applying for home loans.
