You and debt
So, you’ve got debt. And you probably don’t want to talk about it, even if you think you’ve got things under control. Let’s face it, the D-word is hardly spoken outside the bank manager’s office or the bedroom. We tend to view debt negatively and having bad debt can ruin your life, but having good debt can also open many doors. This is why this blog is dedicated to helping you build your credit reputation, regardless if you are a low or high risk borrower.
Did you know that three out of four South Africans have debt and almost half of them have at some or other point in their life not been able to pay an instalment on time?
You’re not alone.
Collectively, South Africans owe R1.49 trillion in consumer credit.
Household debt currently stands at 76% of disposable income, even though it has decreased since 2008. Ten years ago, we passed the 50% debt-to-income mark and have not been able to drop our debt to the 30% that is recommended for a healthy credit status.
Unfortunately, the picture gets even bleaker. Many households are not saving enough since they are struggling to meet their monthly repayments.
So, can things get better? As a slight decrease in unsecured lending took place at the end of last year (2013), we seem to have learnt our lesson and are focusing our attention on repaying our current debt rather than taking on further commitments.
Here are some general tips on how to get started at rebuilding your credit reputation:
- Face the facts: How can you better your reputation if you are blissfully unaware of how much debt you have?
- Get your FREE credit report. By simply registering on www.mycreditcheck.co.za, you will receive a FREE credit report with detailed information about your credit history.
- Analyse your report by looking at your credit distribution. How much are you spending on what types of credit each month?
- Use the credit information to review your budget. This will help you to make better financial decisions and manage your spending.
- Subscribe to receive unlimited access to your report, in order to track your progress.