Symptoms and Prevention of Financial Problems
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 With a reported average of 7000 vehicles being repossessed on a monthly basis and the big four banks showing massive increases in repossessed properties, all signs, as though strung up in neon lights, point to the fact that South Africans are very much in the grip of what is affecting hundreds of millions of consumers all over the world, and what has been termed the ‘credit crunch’.
These are rather sobering facts and situations that all of us wish to avoid at almost all cost. But there are plenty of South Africans who are showing symptoms of financial problems. Let us take a look at some of these symptoms; perhaps you will recognise your own problems here:
You can no longer pay the monthly bills. Once the credit cards have reached their maximum limits and other sources of readily available credit begin to tighten, financial pressure begins to build.
More income is needed. More credit cannot be the obtained, so logic says that more money is needed. But how does one hold down two jobs?
Buy to pacify the pressure. At this stage many people try to pacify the financial pressures by buying something new or going on a “get away from it all” holiday. However, these usually have to be financed with credit, so again the end is worse than the beginning.
Divorce and/or bankruptcy. When financial pressure reaches the boiling point, with no apparent way out, many couples will take it out on one another – resulting in divorce – or they file for protection under the bankruptcy laws in order to start over again.
Fortunately in this life, for every problem there is more often than not a solution or, at the very least, a prevention.
Preventative measures include:
Abstain from borrowing. If it is worth owning it ought to be worth saving for. While it is very unlikely that you will be able to buy a house after you have saved the money smaller purchases, such as furniture and holidays, should be paid for once they have been saved for.
Saving. In today's society, spending and borrowing are promoted and saving – in order to purchase with cash – is discouraged.
Avoid making hasty decisions. Patience and consistency, rather than quick decisions, are the ways to financial security. So, first take time to decide if the item you want is what you really need.
Develop a budget. This is one of the true, tried and tested ways of ensuring you spend money where required and not where desired.
For a solution to your financial woes there are a number of options open to you. Some of these include: a debt consolidation loan, debt counselling, applying for bankruptcy, a debt settlement plan. You will find advice and assistance on these subjects on this website. |
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