Keeping track of finances and payments can be tough, especially when you’re managing a business as well as personal accounts. Many South Africans take out loans in order to make ends meet. In today’s economy this is both a necessary and useful system, but it has its risks. Loans are a form of debt, and not managing them properly can leave you in very sticky situations.
The consequences of struggling with bad debt
Do you know what happens after you realise you cannot make the next payment on your loan? There is a chain reaction of borrowing more money to cover the payments of your originally borrowed money, which you then have to worry about covering, and on and on. The process never ends if you don’t take decisive action.
As well as digging yourself into a bigger hole of debt, there are other effects this situation can have on you. Firstly, your stress levels will increase and negatively impact other aspects of your life. Many people who struggle with debt have expressed their feelings of hopelessness, anxiety and unhappiness. The emotional strain of bad debt can cause strain on families and relationships.
The threat of poverty arising from bad debt can push a person to lie, cheat and steal in order to save their finances and relieve the burden. Additionally, your credit score will suffer and it will become harder to apply for new loans, rent a home and numerous other actions. If the situation gets worse, you can be evicted after not making good on your rent, or be declared bankrupt. You will become blacklisted and will have an even harder time recovering from the debt and finding new avenues of income.
What can I do about my debt?
If this all sounds like a nightmare, it is time to re-evaluate your finances and your debt management strategies. When you feel overwhelmed by the stress, or struggle to make sense of all the legal terminology involved in your loan agreements, speak to One Debt. We can help you get your debt on track and easily managed. As experienced debt counsellors, we can help tailor a bespoke solution for you that will keep you debt free.