Alternative Solutions to Debt Management

There are many who are struggling to find alternative solutions to debt management, especially since being hit by the Covid-19 pandemic.

Debt review is often considered one of the best debt management solutions, not only in South Africa, but around the world. Your interest rates can be drastically lowered, you will only have to pay one lower monthly installment, you will be protected from the harassment of creditors and your assets will be secured against repossession.

If you are considering the option of debt review, make sure you approach a NCR registered debt counsellor. A credible, registered debt counsellor will convey to you that one of the major requirements for a South African consumer to be placed under debt review, is the presence of a regular income. This can be in the form of a salary/ wages, a pension, property rental, or investment payouts.

Should you not have a regular income from where your restructured monthly lower debt repayment can be debited from, you will not be able to apply for debt review.

Sadly, this is the case for many of the South African population who find themselves unemployed right now. Without a permanent income, you will have to find alternative solutions to debt management, as debt review will not be an option for you.

What you can do

• Speak to your family about your situation
  Once family members are aware of the financial distress, they can all work together to alleviate the strain on the household.
• Draw up a new budget
  If your circumstances have changed, it is vitally important to have that reflect in your budget.
• Find alternative ways to save money
  Not everyone has extra money that they can save in a bank account or “under the mattress.”
  Start thinking about changing your lifestyle to save money.

What lifestyle changes will save you money

• Switch off your geyser during the day. An electricity saving of R10/ day adds up to R300 per month, that can be used in some other area of the household
• Unplug all your appliances when they are not in use
• Thaw your frozen foods naturally, as opposed to using the microwave
• Avoid take-outs and fast foods and replace them with stews which can be frozen and eaten on more than one occasion

Whether you qualify for debt review or whether you have to look for alternative solutions to debt management – streamlining your lifestyle to save some money is never a bad idea.

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