JOHANNESBURG, December 20, 2017 /PRNewswire/ --
According to the 2017 World Bank report, South Africa is the most indebted country in the world. With an apparent debt crisis prominent in South Africa, Zero Debt heeds consumers to take control over their spending this festive season. The four critical sources of debt accumulation in South Africa are personal loans, mortgage payments, vehicle payments and retail accounts. The months of November and December see an influx of overspending at around 30% over this period compared to other months of the year - primarily through consumers' personal loans and retail accounts. This results in a client increase of 50% come the end of January, continuing all the way through to March.
"Consumers tend to turn a blind eye to their debt accumulation over the festive season, and creditors are guilty of lending clients money who are already over-indebted" said Chris Craven, CEO of Zero Debt. With credit interest rates higher than 14% consumers need to educate themselves on the effects of spending money they don't have, as well as the repercussions of taking out loans to pay off existing debt.
For the many South Africans who are struggling with debt, here are a few practical tips on how to manage and gradually decrease your debt over this festive season.
- Set up a budget and stick to it. Don't feel the need to 'keep up with Jones'. Keep in mind the real meaning of Christmas.
- Get an overall credit card report before you set up your budget. This will indicate your debt status and how much you are allowed to spend.
- If you can't afford it - don't buy it.
- Pay cash for all your purchases.
- Don't take out personal or microloans.
- Understand the effects of interest rates and inflation.
Zero Debt has been voted as one of the top five debt counsellors in South Africa for 2017. They provide their clients with the protection of the repossession of their assets; a consolidated and reduced rate on all your required debt - as well as a negotiated and reduced interest rate. Zero Debt can help you retain sufficient funds for your living expenses.
"The longer you hold off seeking help, the more indebted you become. We encourage consumers to seek help and apply for a debt review asap, no matter how indebted you are. With expert help and small changes to your spending patterns, you can gradually get yourself out of debt" advices Chris.
SOURCE Zero Debt