Whether it is due to overspending, the high cost of living, losing your job, or the state of the economy, debt has become an increasing problem in South Africa.
Delano Blaauw, a consultant at Debt Less, says that one of the big contributors to debt, is little or no salary increase.
Day to day, people are struggling to make ends meet with their salaries. Increases are marginally smaller than the inflation rate. We end up with people with less money that they have to do more with - and that ends them up in a pit full of debt.— Delano Blaauw, consultant at Debt Less
Blaauw says a good way to keep track of your payments is through debt counselling. This is a platform that consolidated all your payments into one payment. Then the debt counselling company will pay off all your creditors.
He adds that this is a beneficial for both creditors and customers.
If you make this installments, you'll still be left with money for your food and your groceries - your basic budget that you need to get through with.— Delano Blaauw, consultant at Debt Less
What they are trying to do is consolidate that debt into a smaller installment. So they negotiate with all the credit providers, get them to take a little bit less money for a longer time at a lower interest rate so that they get that money at the end of the day, but you get a little breathing room.— Delano Blaauw, consultant at Debt Less
Listen to the full interview below: