You might very well be able to manage your
debt, but facing something like a retrenchment could land you in the debt trap. With South Africa feeling the effects of the recession, retrenchment could become a reality for you, turning your manageable debt into an overwhelming problem.
Take immediate action to sort out the problem before it becomes insurmountable. Evaluate your situation by determining the following:
- How much you owe
- Who you owe
- When do you owe it by
- The consequences for not paying your debt
- Negotiating with your creditors
- Will the crisis be over soon
Obtain your credit report from TransUnion (ITC), Experan and XDS to determine the above. Some companies like CreditHealth get all three for you and compile it into one report.
Once you know how much you owe, you can manage your accounts with individual creditors before applying for
debt counseling or
debt consolidation. The unstable economic climate has left many unable to pay their debt. Creditors should be happy to come to an agreement with you to
get their money owed.
If you qualify for UIF, then claim from it as soon as possible before defaulting on your payments. Many creditors blacklist clients after one late payment. Review your monthly budget and look for ways to save by separating your expenses into “essential items” and “non-essential items” lists.
Anything that you can afford to cut, cut. At least until you find a new job.