15 May Debt Counselling: How to know when you’ve hit financial rock bottom
While many South African consumers are struggling to cope financially each month, Bts Finance is often only pursued once a person has hit rock bottom. Problems with debt start off small and intensify over months and even years. That is why over-indebted consumers are not always aware that they have already hit a very low financial point.
If any of the following scenarios are happening to you, don’t ignore it, take action by seeking help immediately:
1. You are paying credit with credit.
If you are using a credit card to pay another credit account instalment it probably means you don’t have any available funds to pay your debt. Although it might get creditors off your back this month, what will happen next month? Unless you will be earning more going forward or your expenses will change drastically, it is unlikely that you will be able to afford your debt at all.
2. You don’t have enough money for living expenses.
Are you unable to buy food, pay your rent or afford the electricity bill? Do you need to fund all your living expenses using the little credit you have left?
If all your money is going into paying back debt every month and you have nothing left for living expenses, get help as soon as possible.
3. Final notices are arriving at home or at work.
Once the final notices start arriving at home or at work – it’s a red flag. If creditors aren’t sending messages or phoning you anymore but sending you final notices you know the debt has become a serious, legal matter. Get help in before it is too late.
4. Service providers are cutting off a service.
If your electricity, water or phone line etc. has been cut it means you’ve ignored the problem far too long and it is time to take action. Getting these types of services switched back on will require you to pay all outstanding fees, which will put you under even more financial strain. Address the root of the problem and consult with a debt expert urgently.
5. You are telling lies to avoid humiliation with regards to money matters.
Sure it is normal to tell an occasional white lie to get out of that family trip or the out-of-town-wedding you simply can’t afford. But alarm bells should be going off when you find yourself constantly lying about money, especially if you are lying to your boss, partner, family etc. For e.g. not going to work because you don’t have money for fuel, making up stories to borrow money from family or friends or hiding financial statements from your partner.
Don’t be ashamed about your money problems. You are not the only one struggling with debt and you are also not alone in solving it. By trying to cover up your struggles, you are only delaying the healing process. At Bts Finance we have helped thousands of over-indebted South Africans with professional debt counselling, and we can do the same for you.