Credit card debt problems in South Africa are on the rise as rising unemployment has left many people in financial trouble. The difficulty for many people is knowing when to stop spending. For many South Africans, their credit card is the only way they can afford to make it to the end of the month without having to borrow money. What they don’t realize is that every time you use your credit card you are in fact clocking up a sort of debt which also requires you to pay it back eventually. For some people, this is simply not possible. The result is that many end up with a bad credit record or even being blacklisted.
There are simple ways to get help for credit card debt problems in South Africa without landing yourself in further financial trouble. One of these is to seek consolidation of your debts, so that you are able to get a handle on how much you’ve actually been spending. Consolidation is extremely simple to understand. You approach your bank, and essentially take out one big loan to cover all of your smaller loans. These loans are normally given at a lower interest rate which is more stable. This means that your debt doesn’t grow and grow every month, but becomes more manageable. Instead of having to pay many businesses every month, you just pay your bank. One easy monthly payment and your financial trouble will seem like a thing of the past.
In some cases however, for example if you have been blacklisted, even these loans are difficult to access. It is necessary to provide the bank of evidence that you will be able to pay your loan amount as well as the low interest that it accrues. This is done by evidence that you are trying to seek help. Money talks and your bad credit record stays with you for a long time. The best advice is to only use your credit card in emergencies, so that you don’t become one of the many people with credit card debt problems in South Africa.