About 25,5m SA consumers are in some kind of debt – and according to the Reserve Bank, they owe the banks and other credit providers a total of around R1,7-trillion.
The good news is that about 52% of these borrowers are currently managing to keep up with their car, home, card and loan instalments as well as other account payments such as those for cell phones, clothes, furniture, rent or utilities.
But on the other hand, the National Credit Regulator reports that more than 12m consumers are currently in default on a total of about 19,25m accounts – and for these borrowers, debt is often a terrible burden that has them desperately juggling payments every month and cringing every time the phone rings.
However, dodging creditors is obviously not a real solution, and borrowers who find themselves in this situation need a proper plan of action to get out of it. Here are the six steps most recommended by expert debt advisors:
