Debt management solutions

Living on a budget may be all it takes to reduce debts and hold onto assets, if your debt obligations are small.

When techniques such as reducing spending, increasing income and following a strict budget aren’t enough to solve financial difficulties, it is important to contact your creditors in order to negotiate a new, more affordable debt repayment plan, where possible.

Contact the respective product areas for more assistance on 0861 22 22 72.

Rebuilding your credit history

When pressured by debt, improving your credit history may be the least of your priorities due to other immediate concerns. However, rebuilding a credit history is essential to ensure a healthy credit record and to assist in future credit applications.

Simple steps to rebuilding a healthy credit history

  • Ensure all small debts are paid on time and the debt obligation is settled as per the original contractual agreement.
  • When borrowing a small amount of money, ensure the monthly repayments are made according to the terms of the agreement.
  • Where a debit order has been arranged for a payment, always ensure the required amount is available in the account on the day of the payment deduction.

Maintaining a healthy credit record by ensuring monthly credit obligations are met will gradually reduce the negative information reflected on the credit report, as credit record information can only be reported for seven years and six months. As time passes, your credit history will gradually contain more positive than negative information, assuming that you manage your finances responsibly.

Managing your debt

  • The basics of debt management

    Do you ever have debit orders returned or miss monthly payments?

    Are you using credit cards or payday loans to help pay monthly debt instalments?

    Have you ever stopped paying off your debt completely?

    If you have answered “yes” to any of the above questions, we would like to assist you in managing your debt more effectively.

    Creating a budget:

    Creating a budget leads to a reduction in spending and provides a view of potential cost savings that can be made.

    These cost savings include non-essential expenses such as:

    • Groceries: 
      • Reduce the frequency of which you shop for food by buying in bulk. 
      • Hunt for the bargains, buying items on sale will reduce your costs. 
      • Plan ahead and create a shopping list of all essential items. 
      • Never shop on an empty stomach to avoid buying on impulse.
    • Insurance: 
      • Remember that maintaining your insurance cover is essential, even when facing financial strain. 
      • A loss without insurance cover could be financially devastating and lead to a worse financial situation. 
      • In order to reduce the cost of insurance, it is important to ensure that you are paying a fair rate by obtaining competitive quotes, from a broker, on a regular basis.
    • Entertainment: 
      • Including TV subscriptions
    • Club Memberships: 
      • Including gym contracts

    The following steps will help you measure your financial standing by comparing your total expenditure against your income:

    • Determine your monthly expenditure
      • Fixed expenses:
        Monthly payments that remain the same from month to month (i.e. insurance, vehicle repayment and rent etc.). 
      • Variable expenses:
        Monthly payment that varies from month to month (i.e. cellular contracts, retail accounts, groceries and travel expenditure etc.).
      • Periodic expenses:
        Payments that do not occur on a monthly basis but must be budgeted for (i.e. licence renewals and education fees etc.). 

    Add the total expenses together to determine your Total Monthly Expenditure

    • Determine whether you are spending more than your monthly income
      • Where your income does not cover your monthly expenses, it is important to prioritise the repayment of debt obligations and reduce the unnecessary expenses (i.e. gym contracts, DSTV etc.).
  • Over-indebtedness and how to overcome it

    Over-indebtedness is a determination made by a debt counsellor, where a consumer is unable to pay all their debts in a timely manner.

    Signs of over-indebtedness include:

    • Being unable to maintain your monthly payment obligations.
    • Using of recurring payday loans to pay other debt obligations.
    • Defaulting on payments of certain accounts in order to pay other debts, with the hope that you will catch up on those you put aside in forthcoming months.
    • Receiving numerous calls for payment collections from your credit providers.
    • Getting summons from creditors and/or lawyers.
    • Having judgements granted against you.

    If one or more of the above signs applies to you, then you may be over-indebted and in need of financial management assistance and debt counselling.

    How to overcome over-indebtedness:

    The first step is to approach your credit provider, and negotiate lower instalments, where possible.

    Contact the respective product areas for more assistance on 0860 62 76 27.

    If your credit provider is unable to negotiate a lower instalment, it is important to contact a registered debt counsellor, before legal action is taken against the credit agreement. If you are not familiar with any debt counsellors, contact the NCR on 0860 627 627 to locate a debt counsellor in your area or visit the NCR’s website (see ‘Register of Registrants’, and select ‘Debt Counsellors’). Read the section on ‘Debt Counselling’ for more information

Need more help?

Let one of our call centre agents help you get the best credit card for your needs.

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0861 462 273

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