If a consumer is encountering debt they need to come to terms with the fact that they are in financial hindrances and need assistance. To get the assistance needed for debt problems, there are different debt management options available for consumers to use. Consumers can choose a debt management option that will best suit them and their financial situation. There is a vast array of debt management advice available to consumers, but the unanimous accord seems to be that it is never too late to ask for help, or to help yourself. South Africa has many options available to consumers to manage their debts effectively, and below we will highlight some of the best advice in the business.
Firstly consumers should op to avoid obvious debt traps. These include deals with delayed payment, credit increases, and options where payment can be skipped. The consumer will always end up paying more in the long run, as these deals are engineered to be profitable to the creditor.
Secondly consumer should try and consolidate their debts. When payments begin to pile up into an unmanageable myriad of bills, the best debt management advice is to take out a debt consolidation loan and amalgamate all monthly payments into one debit order with a fixed interest rate.
Thirdly, if debts have reached the point where debt consolidation is not an option – consulting a debt counsellor and applying for debt review is advised. By entering a debt review program, consumers will be shielded from asset loss while rebuilding their financial portfolio under the guidance of expert debt management advice.
There exists the option of sequestration and bankruptcy in dire cases, but if a consumer is smart, it is entirely avoidable by employing a solid debt management strategy from day one. By keeping abreast of new developments in credit law, consumers will know what their options are when the debt belt starts to tighten around their budget.