South Africans, like many in the world, have been running up high debts for at least a decade now. Unfortunately, consumers are still racking up extremely high levels of personal debt. We are buying on credit – to buy something instantly - and getting into debt, instead of doing it the old fashioned way: saving up and waiting till we actually have the cash before we buy the items we want.
The thing about debt is that it comes with interest charges added onto it. It’s not rocket science to understand that if you are paying off an item over time with monthly interest charges added, it will inevitably cost more than if you’d paid cash. Multiply your ‘easy monthly payments’ by the number of months you’ll be paying off, and the amount is always higher than the cash price of the item.
You should get rid of both short-term debt (credit cards, retail cards, loans) and long-term debt (your bond) with a payment plan as quickly as possible. You could look at it this way:
If you feel that you are drowning in debt and don’t know where to turn for help, this useful website will help you: www.ncr.org.za. Here you will find the official website of the National Credit Regulator, which is responsible for regulating the South African credit industry. It gives you useful information and contact details, including how to find a reputable and certified debt counsellor.