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#DebtReview: Breaking through a shattered economy

Covid-19 had a major impact on businesses in South Africa, but more specifically, individuals took a hit. People were struck with salary cuts, retrenchments and in turn, being unable to service their debt. With this came the fall of GDP which worsened unemployment and consumers were forced to reprioritize their income. According to the National Income Dynamics Study (NIDS), the impact of the Covid-19 pandemic and lockdown on the South African jobs market, shows that none of the approximately 3 million lost since the onset of the pandemic had returned by June.

Debt management is a successful method to help rebuild your credit and get you back on track with up-to-date account records. Let’s take a look at some of the benefits to debt counselling:

  1. Avoid harassment from service providers

The one thing we all can agree on is that calls from debt collectors are unpleasant. Once you sign up for debt counselling and confirm to be under debt review, the debt review company will notify all your credit providers.  Hereafter, all communication with you directly will stop and if they still choose to contact you, all you have to do is redirect them to your debt review partner.

  1. Opening the door to employment

When applying for jobs, some employers prefer to do a credit check before employing you. This is where you might run into trouble. If you have a poor credit score, this poses as a red flag and it is not likely you will find employment. However, companies like Infinite Life ensure that while you are under debt review, it will reflect on your record and be seen as a proactive approach to fixing your score.

  1. Take control of outgoing cash

Before undertaking debt review, there are probably several service providers trying to debit you and before you know it, you don’t know what’s going off your account. If you are under debt review, you will only have one amount going off your account so you can keep track of what is left and how much disposable cash you have for the rest of the month.

Starting on a clean slate

Once you have fully paid up all of your debt, your name will not have any record of being under debt review. This allows you to start clean from scratch and it also means you will be able to apply for credit without being blocked from the get-go.

If you are unsure of how to start the process, you can get a credit report from your bank or credit score platforms.

By Ramona Singh, Administration Director and registered debt counsellor at Infinite Life

Lawrence Jugmohanhttp://www.digitalstreetsa.com
28 | ॐ | Durban, South Africa | Software Quality Speciaist at BET Software

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