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Debt Problems – Avoiding Over-indebtedness

Debt-911, a registered debt counsellor operating nationally offers the following advice to avoid falling into the over indebtedness trap.

Interest bearing debt, if not tackled efficiently and allowed to grow, has the potential to assume monumental proportions making it difficult to pay it down.

  • Be sure to read the loan agreement’s fine print in detail before you sign on the dotted line.
  • Any extra cash you have should go towards paying off the highest interest bearing debt in order to reduce your debt burden over the long term.
  • Don’t purchase any luxuries on credit. Rather wait until you can afford to pay it cash.
  • Ideally credit should only be used to purchase big ticket items such as houses, cars and furniture that are not easily afforded cash. Even then, be sure to save for a decent deposit that is required.
  • Draw up a budget before you take out debt to ensure that you can afford to pay off the new debt.
  • Save for emergencies. Be sure you set some money aside every month or every week, thus ensuring your savings grow. Pay yourself first.
  • Avoid branded goods as these do not represent value for money.
  • Shop around, don’t simply accept the 1st quote on a job.
  • Always ask yourself whether the object of your desire is a want or a need. Fancy houses, expensive cars, latest technology etc are not necessities and you can do without them.
  • Save to be able to afford that expensive item that you need.

If you do find yourself in a financial squeeze, Debt-911 will assist in reducing your monthly repayments on your secured and unsecured loans, credit cards, overdrafts, clothing accounts, furniture accounts, car finance, home loan/mortgage and Hire-Purchase (HP) agreements.

If you feel you may be over-indebted, and would like to receive a free, no obligation consultation, please complete and submit the form alongside, call us, or SMS Help to 40935 after which a trained Debt-911 debt counsellor will contact you to assess your financial situation. Discretion is of the utmost importance for Debt-911.