Choosing to skip big payments like vehicle and mortgage loans may sound like a good idea at the time, but this has negative consequences that hit your pocket and good financial standing.
Various solutions and help are available for anyone struggling to keep up with their monthly financial obligations. Whether its drawing up a budget and sticking to it or approaching your bank earlier for help, consumers can avoid being heavily indebted or blacklisted if they take key steps.
South Africans are going through tough times, with job losses hitting industries like mining, construction and utilities.
Our advice to consumers was to also think of saving. It’s always important to save money for a rainy day. Think of a goal like paying off school fees, while also bearing in mind not to skip essential payments. The reality is that payment commitments must be prioritized.
A great saving tool is the clever use of several rewards programmes like UCount, which you can redeem at a Caltex garage to fill fuel, and make a saving on this expense. With such rewards, consumers can make relevant purchases to earn points and save, using selected partners.
When faced with failing to maintain monthly vehicle repayments, options like downgrading the car for a more affordable alternative, joining a lift club, reviewing your insurance agreements or using convenient public transport are also available.
Tips for when in financial distress
Identify the challenge early
Speak to the right people. Approach your bank first
Prioritise the debt
The bank is in a good position to assist, before the problem worsens
Don’t fail to communicate and leave the problem until it’s too late
Without a budget goal, you can’t see where your money is going
Different and innovative savings vehicles
Set aside small change from purchases. It can make a difference later
Use the Shyft App, it has great rewards like reaching a goal step
Fixed deposits and Money market accounts are excellent saving tips
Use rewards programmes like UCount and save when refilling on petrol
Make use of store loyalty cards, some of them have a lot of value
When you can no longer afford your current pricier vehicle, look at downgrading to a more affordable option
Don’t cancel your vehicle insurance
Join a lift club
Consider using public transport, if convenient to where you live and work