There are monsters, ghouls, ghosts and all manner of things that go “bump in the night” that apparently scare the heebie jeebies out of us. These supernatural creatures hide out under our beds and become the main features in our nightmares. Do they really exist or are they just figments of our overly creative imaginations?
There are however things that we really need to be scared of. In fact, these very things can inflict damage in the physical and emotional state of our lives. One of which is debt, but we face debt as if it’s harmless thinking “what’s the worst that can happen?”
You know what? Debt is a silent assassin, just waiting quietly for the perfect opportunity to strike us down. We’ve already tackled how to survive from “Zombie” debts and so we’ll discuss yet other scary consequences of debt. Trust me, it’s spine-chilling.
Scary Consequences of Debt – What Are They?
Years of Debt Slavery
Rutherford Hayes once said that: “It is the debtor that is ruined by hard times.” Indeed, no argument from our corner, I agree with Mr. Hayes whole heartedly, most of us are debt slaves. According Statistics South Africa (STATSSA) there are 11 million credit active South Africans which have impaired credit records, otherwise known as being over-indebted. This includes consumers having to pay on bonds and students loans too. Consequently, our “free country” is not really free at all, we’re slaves to debt. It is conquered by the shadow of debt that cripples every South African family. Well now, that’s not just scary…it’s petrifying!
Boulevard of Broken Dreams
Decent education is the easiest route to our dreams, but now student loans are putting the next generation into a decade of over-indebtedness before they can even start working as professionals. Now let’s reflect on the above statistic of 11 million credit impaired SA consumers… take a moment to think about how many of those impaired records are student loans? Bare in mind people take loans for educational purposes (so the actual extent is not properly documented) and unlike other debts, a student can’t file for bankruptcy; this means that their debts cannot be forgiven. The cost of decent education has been rising over the past years. The dream of graduating with a degree, having a nice job, owning a house and your own car is slowly broken down by the infestation of debt. Consequently, the foundation of a great South African future is at risk because of these broken dreams.
Going Slightly Mad
The Royal College of Psychiatrists in the U.K., which is the professional body responsible for education and training, setting and raising standards in psychiatry; reported that one in two adults with debts has a mental health problem. Furthermore their studies show that one in four people with mental illness is also in debt. Sounds horrific I know, but here’s a more horrible scenario to this, over-indebtedness can push someone’s physical and mental limits to the brink, which can lead to a serious mental illness. Hence, debt is something that can make you lose your rational mind, and psychiatrists are now seriously evaluating patients financial standings, to determine if its part and parcel of their current mental state of mind. The pressure from your creditors and debt collectors, accompanied by the stain in your reputation if you have unpaid debts makes matters worse. Creditors and collectors don’t care about how you feel or how you’re struggling financially. They can put into practice inappropriate and tactful techniques just to make you pay your debt off.
Seek the help of a certified Debt Counsellor. They can explain to you some debt relief programs, and undeniably they’re the people you really need the most to help your get through this trying time.
The Bad Credit Rating Effect
Honestly speaking, credit scores are just a presumption based on your current credit repayment history; on how you’ll pay off the loan that you’re applying for. Though it’s not really just about numbers, a bad credit score will affect you in every single way you can think of. If you have a bad credit score most likely people will automatically not trust you with money, especially employment in the financial sector. It’s like you have something written on your forehead saying “I’m not a good payer and can’t be trusted with money” which is absolutely not the case. It definitely hurts you when you’re applying for insurances, applying to rental accommodation and even getting a job both from the public and private sectors. Consequently, it will also affect your personal relationship with others, not to mention your significant other. Don’t be an outcast in the financial world; get help fixing your bad credit score as soon as possible!
Interest Rates on Credit Baring Accounts
The power of interest can make you rich (if you’re a credit provider) or can make you sink into poverty. It’s the business secret of all credit providing institutions, that’s why until now, you’re still paying them around nine times on what appears to cost you. Not to mention all the hidden charges and late payment penalties they charge you, which you probably haven’t taken the time to scrutinize your statement to actually find out how bad it is.
The Debt Collectors
Even if the National Credit Act No. 34 of 2005 protects the debtor’s from abuse and harassment of debt collectors, still, the presence and the voice of debt collectors give a person chills up and down their spines. More often than not, debt collectors violate the Debt Collectors Act No. 114 of 1998 & Debt Collectors Code of Conduct by harassing debtors through threatening phone calls, SMS’s, emails and even illegal asset attachment procedures. Debt collectors may sometimes not honour or even care that you’ve filed a dispute against your debts, proceeding against you without a care and disregard to the law. They will continue to call you every day even in at inappropriate times, while you’re at work or late at night. Debt Collectors are everywhere and they can hunt you down in every possible way imaginable. Well, debt collecting is their expertise and assuredly, they will persuade you to pay it off…using every means necessary illegal or not.
Endless Debt Payments
We all know that the South Africa is built upon debts, just ask China for one. Good debt is the building block of every great nation, though ours is in need of some serious debt therapy in its own right. Regardless, South Africans nowadays are cursed with an endless supply of repayments towards their debts. Hundreds of thousands of loans are left unpaid every day, but still the cycle of debt continues to grow throughout our country. Payments upon payments make the lending industry a profitable enterprise. Furthermore, the limited possibilities of the South African dream are being confounded into a wall of over indebtedness.
Assuredly, if you want to stop the endless process of debt repayment, why not try to enrol in a Debt Counselling program and seek help from a certified Debt Counsellor whose job it is to get you out of the debt cycle.
The Debt Busters
We see that debt is really scary, but no need to worry, there are the “debt busters” who can help you. Oyisa United Debt Specialists have debt management programs that will assist you to pay off your debts the financially smart way. Call us now 043 050 1128 or 079 9800 822 today for a no-charge, no-obligation consultation with our certified Debt Counsellor.
Why not? The only thing you stand to lose is your debt!
With over 11 years of specialized experience in the debt & legal field Oyisa United Debt Specialists is committed to assisting South African consumers in financial liberation.