Guiding consumers since 2009

Debt

By Staff Writer

Most of us, at some point in our life, will have debt. Many of us will struggle with debt and at some stage, all of us will want to get out of debt. But where do you even begin?

The most important thing is to prioritise your debt.  While all debt does need to be repaid, some debts might have more dire consequences than others  - if they are left unpaid.  If you are serious about paying off your debt and getting everything up to date, it’s vital that you sit down and take stock of all the money you owe  to financial institutions.

For example – if you have a mortgage, it should be at the top of your debts list because you could lose your home if you fall way behind with your bond repayments.

With this in mind, if you have any debts secured on your home – you should work towards paying this debt off first.

Important, though, that you keep paying all your debt – just because you are focussing on paying off one specific loan or credit card, doesn’t mean you should disregard all other payments.  If you feel that you are struggling with your repayments and you simply cannot keep up with your debt every month, don’t simply ignore the situation.

If you are falling behind on debt repayment, your situation will only get worse. If you lose your job or you start falling behind on your repayments for whatever the reason might be, it’s vital that you contact your lenders immediately and make an arrangement with them. Most lenders are far more accommodating than most people realize – especially if you contact them directly to make an alternative arrangement for dealing with your debt.

The most important thing is, though, that you are honest and up front about your situation.

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