All those consumers who fail to make their credit card payments run the risk of having their credit limit reduced by the credit card companies. The increasingly large number of credit card defaults shows that more and more people in South Africa are not managing their personal finances and this is the reason behind the huge debt amount. Instead of defaulting on your credit card payments and being subject to the outrageously high interest rates on the credit cards, it is certainly better to opt for some debt relief methods that can help you get back a firm grip on your finances. However, don’t forget to get multiple debt quotes so that you’re able to choose the best one in the market. If you’re wondering what the options are, here are some that you may feel interested in.
• Get help from the debt counselling agencies: The debt counselors are more like teaching organizations that take into account your present financial condition before offering you any kind of financial help. The debt counselors will check the total debt amount that you owe, the total income that you earn and the interest rates that you’re paying on the debt accounts. They will craft a budget for you so that you can follow it and keep a close watch on your pennies. They will try their best to help you repay your debt obligations by following a budget.
• Debt management program: The debt management program (DMP) is a program that is initiated by the credit counseling agencies when you don’t have the ability to repay your debt through steps of your own. They will sign you up with this program and you just have to make a single monthly payment to the credit counsellor. The payments will be disbursed off to your creditors and you can thereby get out of debt by making a single monthly payment.
• Debt consolidation loans: When you’re trying your best to get out of debt on your own, you should take out debt consolidation loans from a bank or a financial institution. The debt consolidation loans carry lower interest rates than what you were paying on your credit cards. You can use the proceeds of the debt consolidation loan to repay your credit card companies and then start repaying your debt consolidation loan in easy and affordable monthly payments. It is possible to boost your credit score through debt consolidation loans as you can get back on the monthly debt obligations.
Therefore, when you’re spending sleepless nights thinking of the rising debt obligations, take help of the above mentioned debt relief options. Also take a look at the bigger picture in South Africa so that you may know the benefits of remaining careful about your personal finances.